Honestly, kind of refreshing.
But I also want to own property. The devaluation of real estate can’t happen fast enough.
This is fascinating to watch. I saw MSTR made a huge purchase so checked their SEC filings and sure enough, they were selling stock. Please write a book analyzing this strategy!
Been holding URA a few years now. I reduced my position to get some more cheap mortgage reits, but still holding a little bit long term.
Have you ever wondered what the cost of rent would be under a Bitcoin standard? 👇 #BitcoinUrbanism #Housing
An important factor in determining the average cost of rent in a given geographic area would be the average disposable income of a household in that area. Over time, rental prices would emerge naturally from the market. This is a very complex subject.
According to the Austrian economist Ludwig von Mises, rent is not the specific revenue from land, it is a market phenomenon, where entrepreneurs are willing to take risk by investing funds in the production of a house to earn a return (rent).
Mises called this “originary interest,” which refers to the markup between factor prices and the expected revenues from the sale of the finished product. The implied rate of return on a production project.
When renting, the surplus money from not purchasing a house can be used for something else that is considered more important. For example, to finance a business or to save (for comparison: Under fiat, excess cash can be used to buy bitcoin).
We can expect the #rent to be close to the risk-free interest rate under sound money, plus an adjustment for risk, because after all, the rental is not risk-free. The property could be damaged and rent not paid. Yes, insurance could be purchased, but it would be costly and time-consuming.
The market interest rate would reflect the overall time preference of people in the economy. A risk-free interest rate would naturally emerge from the market, as will for example the average rents.
Full article: https://bitcoinmagazine.com/markets/bitcoin-will-completely-change-real-estate-markets-and-interest-rates
I would modify this by saying that the entrepreneur who buys the land and builds a house is not producing a house (though this is the orthodox view), he’s buys the land, building a capital asset, and “producing” dwelling space. The market is ultimately for space, the physical structure is PP&E.
Regarding zoning laws (they are awful), have you heard of Christopher Alexander and his Pattern Language? I think it would be an obvious alternative to top down zoning laws under a bitcoin regime.
#Bitcoin is creating a paradigm of digital self-sovereignty, empowering individuals with full control over their wealth. 💫
https://bitcoinmagazine.com/culture/bitcoin-is-a-possession-not-property
What if there is a dispute over control of the keys (possession)? That entitlement would need to be enforced, which could only be accomplished with a property rule (see Morris, Structure of Entitlements, 78 Cornell L. Review 822 (1993)). Moreover, the issue of multiple ownership can be analogized to a tenancy in common, which allows parties to own and interest in the undivided whole, thus enjoying the same property entitlement protections.
Any estimate of what that would be? Or possible method for estimating it? My guess would be to look at some index price that removes inflation.
I had the honour of being guest on the 100th episode of nostr:npub1st4elxz4dphx2qxpuaklvs855zetnkglu8dvszdxamgqn5q3pk5svflv5p's German Bitcoin podcast "Was Bitcoin bringt.". He is a tremendous asset to this space. We talked about how Bitcoin will replace the broken monetary system - and with it, #realestate investments as we know them today. The first part of our conversation is online. 💫
Unfortunately I don’t speak German. Can you relay your thoughts on how real estate investing will change? Thank you.