How does Bitcoin help fix the housing and rental markets? 🤔😮‍💨 \ stacker news ~bitcoin

pull down to refresh

How does Bitcoin help fix the housing and rental markets? 🤔😮‍💨

475 sats \ 13 comments \ @satoshi_in_the_classroom 6 Oct 2023 bitcoin

6 sats \ 2 replies \ @megaptera 6 Oct 2023

Today, a lot of real estate is purely used as a store of value, which goes up and up but has a price to maintain. As soon as Bitcoin sucks up all of that value, prices for houses will drop and become affordable again, which will also translate to cheaper rents.

15 sats \ 1 reply \ @satoshi_in_the_classroom OP 6 Oct 2023

GPT spat this out... "The notion that Bitcoin could entirely replace real estate as a store of value and drastically lower housing prices is speculative. Bitcoin's role as a store of value and its impact on the real estate market are complex and influenced by various factors, including government regulations, market dynamics, and affordability issues. While Bitcoin may have an effect on certain segments of the real estate market, it's unlikely to be the sole driver of universally lower housing prices, as housing affordability depends on a range of economic, regulatory, and regional factors."

Bitcoin is also mainly a store of value and has a price to maintain. Assuming Bitcoin will suck up this value and people will dump housing is a scenario I hope will happen...

0 sats \ 0 replies \ @Stacksats 7 Oct 2023

Yes. It's not wrong but also ₿ is a black hole

6 sats \ 6 replies \ @TomK 6 Oct 2023

By changing incentives. People and investors will learn that real estate isn't a money box - the rising yields over the next decade will teach them, rising counterparty risk will move them.

220 sats \ 5 replies \ @satoshi_in_the_classroom OP 6 Oct 2023

Perhaps. This is assuming Bitcoin, priced in fiat, keeps pumping and interest rates stay high.

Interest rates drop, more pressure on housing demand.

Bitcoin stays flat - incentives aren't as strong for many normies.

5 sats \ 3 replies \ @TomK 6 Oct 2023

I think interest rates will be rising sharply this decade. Markets try to get rid of over-indebtedness (is this actually a word??). People will learn that real estate prices are falling (deflating) in most regions and that there is a risk taking up hundreds of thousands of debt privately.

30 sats \ 2 replies \ @satoshi_in_the_classroom OP 6 Oct 2023

Interesting.

I mean, the whole system is managed by making sure people and businesses do NOT have to ever fully repay their debts. If they did - the whole thing blows up. So assuming the interest rates will stay and go higher - although it ought to reset all the bad debt - it would tank and blow up the economy. And the policy makers won't do this. They'll likely lower the rates so people can prop up the economy by taking a bit more debt and keeping the circus going.

Do markets actually try to rid themselves of bad debt? Maybe a more natural one... But this economic fiat system is so artificial.

20 sats \ 0 replies \ @TomK 6 Oct 2023

The state, with its cb, of course can manipulate the price of money over a certain time - until the bond market is saturated which seems to be very close if not overshoot already.

10 sats \ 0 replies \ @Stacksats 6 Oct 2023

Not to mention the government interventions coming. They'll do anything to keep it going as long as it can.