The car seemed strange to most at first, with many failing to grasp its benefits. Some car owners even harnessed horses to their cars. In a similar vein, #Bitcoin remains enigmatic to most today. image
In a world marked by increasing violence and hostility, the ability to protect wealth with Bitcoin becomes critical.
dw.com
Global conflicts: Death toll at highest in 21st century – DW – 06/28/2023
Conflict deaths are higher than they have ever been this century with over 238,000 people killed in conflicts last year.
Sharpening mind, body and soul. Day for day. Night for night. image
With rising interest rates, #realestate has become less affordable as people cannot afford financing. Therefore, I expect people to gravitate towards buying bitcoin, an accessible and affordable store of value.
How Cannabis Affects Disciplined People.
Balancing Bricks and Bytes: The Evolving Role of Bitcoin in #RealEstate - a new article of mine is online. https://en.coinfinity.co/blog/bitcoin-and-real-estate-leon-wankum
Bitcoin is pristine collateral for lending. Since #realestate development is very capital intensive, credit is important. That is, the more bitcoin you own, the more collateral you have to finance construction. We've discussed this in detail at Bitcoin Amsterdam.
Money is highly spiritual.
Some of my thoughts on what interest rates would look like under a Bitcoin standard? πŸ‘‡ In a free market under hard money, the actual or market interest rate depends on various factors, in particular the supply and demand for capital. When the supply of capital exceeds demand, the market interest rate falls, while it rises when demand exceeds supply. The market interest rate is therefore the price at which capital is exchanged on the market. A net interest rate would likely emerge naturally. We can assume that the interest rate would reflect the general time preference of people in the economy. Under a Bitcoin standard, interest rates would likely be higher, as the risk of capital loss is higher with a finite money such as bitcoin than with a fiat currency. This will likely result in higher interest rates being demanded to compensate for the higher risk. Under a fiat standard, the "risk-free" interest rate is tied to inflation. A US Treasury bond with a yield of 5-6% would be considered risk-free, among other things, because the yield theoretically compensates for the loss of purchasing power that fiat money experiences. More importantly, the "risk-free" interest rate component of fiat money refers to a country's risk of default, which is generally considered very unlikely since states are able to produce money β€œendlessly”. The term "risk-free" is misleading. It does not exist per se. Opportunity costs exist always and everywhere and the market interest rate depends on various factors, including the risk of capital loss. There is also a historical certainty that any fiat currency will eventually go to zero, which is often not reflected in the fiat market's "risk-free" interest rate. Under a Bitcoin standard, the lowest risk component relates to the risk of loss of bitcoin held in self-custody. When stored in cold storage, those bitcoin are the holder’s alone and not in danger of confiscation or inflation by third parties. The lowest risk return for #bitcoin is directly related to productivity. Since bitcoin is finite, the value of individual units increases with human productivity. There is a risk of not participating in the increase in the value of bitcoin (deflation) in the event of a loss. The interest rate on a loan under a Bitcoin standard would likely be the deflation rate plus a risk premium to compensate for the potential loss of bitcoin. 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.
Have you ever wondered what the cost of rent would be under a Bitcoin standard? πŸ‘‡ #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 β€œoriginary 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.