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100 sats \ 4 replies \ @Undisciplined 17h \ on: How Housing Bubble #2 Bursts (Charles Hugh Smith) econ
Interesting. That issue wasn't on my radar because I've lived in that very light colored middle part of the country for the past decade.
Bitcoin fixes this by eating the monetary premium in real estate and reducing it's price to the use value.
Bitcoin fixes this by eating the monetary premium in real estate and reducing it's price to the use value.
So I've taken the Schiller U.S. National Home Price Index reindexed at 2018Q1
And then taken Yahoo's monthly price history for BTC, since 2018Q1, then indexed it as 2018Q1=100 too.
Then,
Schiller in BTC = Dollar index / BTC index * 100:Which leaves us with the question: wait... what housing bubble? lol
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It might be that what's mostly happening is just that Americans' wages aren't keeping up with inflation and we're perceiving it as bubbles because we can't fathom that much inflation.
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This is what most people say it feels like. Everyone I know is complaining about inflation and their perception definitely does not match CPI numbers. But also an awful lot of these people are millennials and do they even remember real inflation? It's also a lot easier to deal with when you're in your 20s than when you're in your 30s or 40s.
This would mean the real value of the dollar is much lower than what the Fed makes us believe, which I think more likely than BTC being overvalued 10x right now. But unfortunately we can really only learn this in the future. Either way it's likely a combination of things?
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I think it's much more likely that bitcoin is undervalued 10x than overvalued that much.
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