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:

Bitcoin Magazine

Bitcoin Will Completely Change Real Estate Markets And Interest Rates

Bitcoin as a new variable in global markets will have a drastic effect on other market prices the larger it grows.

#Bitcoin. 💫