Yes you are correct partially however, you can’t live in a Bitcoin. Thus on a Bitcoin standard you either use Bitcoin to buy a house or you continually pay out Bitcoin to pay your rent. Either way you will have to exchange Bitcoin for a roof over your head.

I honestly believe a mortgage will no longer be a viable option thus do you buy or rent becomes the only question. I see a stability value in buying as I believe many people will.

Agreed that houses will no longer serve as an investment except for scarce land value. Is residential land scarce with a declining population? Arguably not however something like ocean/river/lake frontage is still likely to be sought after.

Once Bitcoin has monetised and realestate demonetised I believe people will exchange Bitcoin for the utility value of family home vs renting.

Just like people buy a car (depreciating asset) vs using an Uber.

I’m hoping your new book addresses the paradigm shift required?

I was writing about Bitcoin vs Real Estate the other day. Real Estate being my background and I was musing over if the ‘relatively non volatile’ high ratio, loan to equity, leverage currently available on realestate has a place in a Bitcoinised world?

Leaning on the idea that credit is time travelling resources. The borrower moves potential resources from the future into the present and the lender, forgoes resources in the present for an expected increase of resources in the future. Or banked past labour is exchanged for promised future labour in excess of current banked labour.

I believe the conclusion I landed on to be correct. I concluded that we will need to shift our paradigm from our current debt based paradigm, that fiat money has created, back to my grandfather’s paradigm that debt to purchase a stagnant asset, such as a house, is going to be bad debt. Buying a house (particularly for utility purpose) with debt will be an exceptionally bad idea. On a Bitcoin standard, Bitcoin wages should decrease in # of Satoshis over time whilst simultaneously your lower # of Satoshis will buy you more stuff. Thus any fixed debt on a house will get further and further out of our reach over time. Thus for these types of purchases both for assets that hold value across time, such as a house, or lose value over time, such as a car, we will need to save the full amount in advance before purchase. “Never a lender or borrower be”

The only debt that will make sense on a Bitcoin standard is debt against a business/asset that will outperform the natural incremental or exponential global increases in GPD from improved efficiencies due to technological improvements.

It’s a massive paradigm shift but I’m enjoying the cognitive dissonance this has forced upon me. Plus having a background in psychology and being a student of human motivation I’m excited to watch the cultural change this forced shift to financial prudence creates.

I can’t imagine a more exciting time to be alive.

On a person note, thank you for all the value you add Jeff. You have been a calming energy of reason amidst all the shilling and anarchy.

I’ve been pondering this a lot lately.

So the pro’s of realestate in Aust is

1. it’s pretty stable, value wise, and generally trends up or sideways and when it trends down, as long as you keep paying your mortgage, there is no margin call.

2. That makes well chosen realestate a pretty good leverage play

3. Capital gains plus income

4. Ability to add value and thus increase both capital gains and income.

There are too many cons to list.

I have wondered if, as Bitcoin becomes more monetised and thus stabilises aka is less volatile to the upside and downside, there might be a place for realestate as an investment vehicle purely for the relatively ‘safe’ and high leverage play it allows for. However, this thesis does not take into account the de-monetisation of realestate as an asset class back to utility value.

So I suspect, in the short to medium term, Bitcoin trumps real estate in every way imaginable, except for it being income producing. However, in the long term when Bitcoin is global money and has consumed all value excluding incremental annual GDP growth and realestate has reduced to utility/scarce land value. A home with ocean views is always going to trump the same home without views. Maybe then there is value in the ‘safe’ leverage play available for realestate? However, in a fully bitcoinised world it would not be a good idea to take a Bitcoin loan to buy realestate as you’d be forever trying to payback something of greater value with an income that was reducing… I think that is how deflation on a Bitcoin standard would work. So in that world you’d work hard, save your Bitcoin and once you’d saved enough, buy your house outright? As you save your savings would go up and the cost of your house (the cost of everything deflates over time in Bitcoin terms) would come down and eventually you’d meet in the middle.

Such a paradigm shift from what we know now, it’s challenging to think through.

Not a bubble yet. It’s still in discovery.

https://www.mindvalley.com/lifebook/online/masterclass

Hi Jake, thanks for the zap. I think you’d really enjoy lifebook. It’s intense but really helps you get aligned.

Thanks for sharing Jake… this will prompt me to do some work, it’s time for us to update our goals and relevant beliefs to support those goals.

We came across something called, ‘Lifebook’ a few years ago. I call it goal setting on steroids… have you heard of it?

Has Bitcoin just become, thy enemy of my enemy, is my friend, for the BRICS alliance?

Has getting out from under the global financial dictator (U.S.A.) become more important than holding onto dictator powers in their own nations?

I just read a couple of interesting thoughts on finance and money…

“The essence of finance is time travel. Saving is about moving resources from the present into the future, financing is about moving resources from the future back into the present” Matt Levine

This was just a different way for me to think about finance.

and,

“A good working definition for money is, anything you can pay your taxes in.” Jacob Goldstein.

It made me wonder how long until Governments accept bitcoin as payment for taxes?

With the latest coming out of BRICS I wonder if this will be sooner than we imagine.

It also makes me wonder if BRICS understand that by adopting Bitcoin they undermine their entire power structure but at the same time they are also undermining the entire power structure of their enemies?

Has Bitcoin just become, thy enemy of my enemy, is my friend, for the BRICS alliance?

Has getting out from under the global financial dictator (U.S.A.) become more important than holding on to dictator powers in their own nations?

…Yes, I know not all BRICS nations operate under dictatorships…

Sweet 16 and never been kissed.

Happy HODLween everyone!

Remember,

“Fences are for sheep.”

and

“True perfection is the balance between order and chaos.”

Well, he seems pretty level headed.

https://podcasts.apple.com/au/podcast/bitcoin-audible/id1359544516?i=1000673857343

This is a good one. Thanks nostr:npub1h8nk2346qezka5cpm8jjh3yl5j88pf4ly2ptu7s6uu55wcfqy0wq36rpev

Nostr is the digital, global, Galt’s Gulch!

This is the platform where the producers of the world connect.

Thanks to Nostr, the hard money phoenix rises from the fiat, clown world ashes, stronger and faster.

nostr:npub1jmy8weweqzckna0amz7pn0uhhkxx693l7st23829ewmu43yvjsesfp6xcq nostr:npub1wezprxcca3tttvnhncxsxhnhz25av6wml0jm9305tr94vjhmdj2s2e62hu nostr:npub1crsvgfepxnvjm2r9zegvzr9xz2m3pfns6hsyxjy0yls88g0k8gtqhc9r37

Does she know a quantity?

If no one knows about it, no one knows about it.

This is exactly how I feel.

We stand on the precipice of an abundant and awe inspiring future.

🤣

I’m sorry to hear … but it’s never too late… unlike a corked red wine, we humans are regenerative, thank goodness.

I’m also feeling a little corked myself right now. However, some cleaner eating, a bit more exercise and a regular meditation practice and I’ll look and feel a good 10yrs younger in about 4 weeks. 🏃‍♂️💪