thevin on Nostr: This content got 50 likes on Twitter. Let's see how it does on Nostr... What makes ...
This content got 50 likes on Twitter. Let's see how it does on Nostr...
What makes #bitcoin a superior store of value to traditional real estate?
1.) Real estate is EXTREMELY location specific. Your cashflow hinges on local fundamentals/expenses, local regulation, local zoning, local taxation and local population growth.
#Bitcoin is location agnostic. It exists everywhere and nowhere, able to escape authoritarian regimes.
2.) Real estate is EXTREMELY cost intensive. A new roof, functional obsolescence, structural damage, etc can destroy months of cashflow. If you cannot service it or are forced to sell, we call that DISTRESSED. Sound familiar in 2023?
#Bitcoin has no ongoing user maintenance costs.
3.) Real estate profit is EXTREMELY skewed toward operators. As an LP, you are placing your capital in the hands of your operator (GP), who makes the bulk of property decisions w/r/t your investment $.
With #Bitcoin, you control where and how it's controlled. No counterparty risk.
4.) Real estate is EXTREMELY illiquid. The sale process of even a highly-desirable CRE asset is typically 2-3 months. Marketing, offer process, due diligence, closing, etc takes time.
#Bitcoin is a 24/7/365 highly-liquid marketplace with a network uptime of 99.99% since 01/03/2009.
5.) Real estate, particularly CRE, has an EXTREMELY high entry-level cost. Even a small $3M deal typically requires ≥$600,000 in equity. With 60% of the US population living paycheck-to-paycheck, CRE ownership is a dream.
If you have $1.00 to your name, you can buy #BTC today.
6.) Real estate is EXTREMELY management intensive. If you outsource management, it's expensive. If you manage it yourself, it's time-consuming.
#Bitcoin allows you to pocket your "digital real estate" and take your UTXO ownership with you wherever you go.
100% transportability!
7.) Real estate is EXTREMELY subject to environmental risk. Did a neighbor leak hazardous chemicals onto your property? Did a hurricane come through? Hail, flooding, other acts of God?
#Bitcoin exists solely in cyberspace. It does not decay under time or material conditions.
8.) As rental rates rise, so does the $ incentive to construct MORE real estate.
#Bitcoin has a perfectly inelastic supply (21m only). More demand ≠ more btc. As more miners join the network, the more secure the network becomes. As more use #btc, the higher the price should rise.
9.) All of these factors render a blanket conclusion:
For the average person, #bitcoin is a superior alternative as a store-of-value and wealth builder over RE. BTC has less risk, more upside, all while boasting superior returns on a risk/reward basis for long-term holders.
Kudos to the Swan (npub1tft…xar5) team and Hard Money show for the great content.
What makes #bitcoin a superior store of value to traditional real estate?
1.) Real estate is EXTREMELY location specific. Your cashflow hinges on local fundamentals/expenses, local regulation, local zoning, local taxation and local population growth.
#Bitcoin is location agnostic. It exists everywhere and nowhere, able to escape authoritarian regimes.
2.) Real estate is EXTREMELY cost intensive. A new roof, functional obsolescence, structural damage, etc can destroy months of cashflow. If you cannot service it or are forced to sell, we call that DISTRESSED. Sound familiar in 2023?
#Bitcoin has no ongoing user maintenance costs.
3.) Real estate profit is EXTREMELY skewed toward operators. As an LP, you are placing your capital in the hands of your operator (GP), who makes the bulk of property decisions w/r/t your investment $.
With #Bitcoin, you control where and how it's controlled. No counterparty risk.
4.) Real estate is EXTREMELY illiquid. The sale process of even a highly-desirable CRE asset is typically 2-3 months. Marketing, offer process, due diligence, closing, etc takes time.
#Bitcoin is a 24/7/365 highly-liquid marketplace with a network uptime of 99.99% since 01/03/2009.
5.) Real estate, particularly CRE, has an EXTREMELY high entry-level cost. Even a small $3M deal typically requires ≥$600,000 in equity. With 60% of the US population living paycheck-to-paycheck, CRE ownership is a dream.
If you have $1.00 to your name, you can buy #BTC today.
6.) Real estate is EXTREMELY management intensive. If you outsource management, it's expensive. If you manage it yourself, it's time-consuming.
#Bitcoin allows you to pocket your "digital real estate" and take your UTXO ownership with you wherever you go.
100% transportability!
7.) Real estate is EXTREMELY subject to environmental risk. Did a neighbor leak hazardous chemicals onto your property? Did a hurricane come through? Hail, flooding, other acts of God?
#Bitcoin exists solely in cyberspace. It does not decay under time or material conditions.
8.) As rental rates rise, so does the $ incentive to construct MORE real estate.
#Bitcoin has a perfectly inelastic supply (21m only). More demand ≠ more btc. As more miners join the network, the more secure the network becomes. As more use #btc, the higher the price should rise.
9.) All of these factors render a blanket conclusion:
For the average person, #bitcoin is a superior alternative as a store-of-value and wealth builder over RE. BTC has less risk, more upside, all while boasting superior returns on a risk/reward basis for long-term holders.
Kudos to the Swan (npub1tft…xar5) team and Hard Money show for the great content.