Bitcoin and Real Estate are similar in many ways: hard, tangible, scarce
Most people today buy land because it’s scarce.
This means real estate (finite) increases in value over time compared to the dollar (infinite).
1 km² = 1 km²
1 house = 1 house
1 BTC = 1 BTC
Most people today buy land because it’s scarce.
This means real estate (finite) increases in value over time compared to the dollar (infinite).
1 km² = 1 km²
1 house = 1 house
1 BTC = 1 BTC
But, land priced in BTC is different
Suddenly only the utility value of living in a house or using the land productively remains
The monetary premium is being drained to zero
Suddenly only the utility value of living in a house or using the land productively remains
The monetary premium is being drained to zero
Why?
Bitcoin is perfect money.
It has zero maintenance costs. You can buy any amount large or small. There are low transactions costs. There are no or low taxes. It’s hard to steal. It is portable.
A new physical constant in the universe: 2.1*10^11 sats
Bitcoin is perfect money.
It has zero maintenance costs. You can buy any amount large or small. There are low transactions costs. There are no or low taxes. It’s hard to steal. It is portable.
A new physical constant in the universe: 2.1*10^11 sats
Let’s take an example average house, in an average city.
Let’s assume there is a equilibrium for housing (ie new demand = new supply) and the utility remains the same (no renovations).
On a Bitcoin standard while the “value” of a property remains the same, the price decreases
Let’s assume there is a equilibrium for housing (ie new demand = new supply) and the utility remains the same (no renovations).
On a Bitcoin standard while the “value” of a property remains the same, the price decreases
Why? Deflation.
Overtime the purchasing power of 1 satoshi increases due to its fixed supply.
As people “hoard” Bitcoins, the available supply decreases, pushing up the price.
The only way to increase the supply is 1) mine new Bitcoins, or 2) buy them from existing holders
Overtime the purchasing power of 1 satoshi increases due to its fixed supply.
As people “hoard” Bitcoins, the available supply decreases, pushing up the price.
The only way to increase the supply is 1) mine new Bitcoins, or 2) buy them from existing holders
Bitcoins fixed supply causes the phenomenon ∞/21M
This is known as “Number Go Up” or “NgU” technology
medium.com/@interstellarb…
This is known as “Number Go Up” or “NgU” technology
medium.com/@interstellarb…
Importantly, this rewards savers, will make loans rare, ultimately improving society and stability.
A Bitcoin standard will make saving for a house possible and housing affordable.
With all this in mind, let’s compare real estate market capitalisation to Bitcoin capitalization
A Bitcoin standard will make saving for a house possible and housing affordable.
With all this in mind, let’s compare real estate market capitalisation to Bitcoin capitalization
The earth is 510 million km²
Of that 71% is ocean (361m km²) and 29% is land (149m km²).
Of that land, 71% is habitable (104m km²)
Of that habitable land, 50% is agriculture (51m km²) and 1% is urban (1.5m km²).
52.5m km² is the land “used by humans” that has a price tag
Of that 71% is ocean (361m km²) and 29% is land (149m km²).
Of that land, 71% is habitable (104m km²)
Of that habitable land, 50% is agriculture (51m km²) and 1% is urban (1.5m km²).
52.5m km² is the land “used by humans” that has a price tag
That price tag is $326.5 trillion USD. The total value of global real estate 2020.
$32.6 trillion commercial real estate
$35.4 trillion agricultural land
$258.5 trillion residential real estate
$32.6 trillion commercial real estate
$35.4 trillion agricultural land
$258.5 trillion residential real estate
If we compare global real estate to #Bitcoin and assume they are equally as valuable.
0.4 BTC ≈ 1 km² of Valuable (Ag + Urban) Land
14 BTC ≈ 1 km² of Urban Land
0.2019 BTC ≈ 1 km² of Agricultural Land
Bitcoin is currently undervalued by ~698x!
0.4 BTC ≈ 1 km² of Valuable (Ag + Urban) Land
14 BTC ≈ 1 km² of Urban Land
0.2019 BTC ≈ 1 km² of Agricultural Land
Bitcoin is currently undervalued by ~698x!
This assumes Bitcoin is as valuable as Real Estate, but…
How much will Bitcoin be worth in complete hyperbitcoinization?
How much will Bitcoin be worth when we settle the solar system?
How much will Bitcoin be worth when we go interstellar?
medium.com/@interstellarb…
How much will Bitcoin be worth in complete hyperbitcoinization?
How much will Bitcoin be worth when we settle the solar system?
How much will Bitcoin be worth when we go interstellar?
medium.com/@interstellarb…
In conclusion, Bitcoin is radically undervalued compared to Real Estate and will reprice over the coming decades.
Bitcoin will bring about a radical new sound monetary system that rewards savers, makes housing affordable once more and exponentially increases human productivity
Bitcoin will bring about a radical new sound monetary system that rewards savers, makes housing affordable once more and exponentially increases human productivity
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