0 sats \ 6 replies \ @Undisciplined 17 May \ parent \ on: Property management built on Bitcoin bitcoin
I guess this depends mostly on how much downside risk you're willing to take on, since you could always offer your tenant discounts to protect them against volatility in the other direction.
I don't see it as any downside risk.... I believe 100% in Bitcoin and its value increasing over time when measured against FIAT - if that believe proves accurate then no matter what else happens - we are both in a better position than if we were 100% FIAT.
This is why I mentioned the part of not being over-leveraged - having long-term, stable debt locked in on the property ensures that I know what my future FIAT payments will be...outside of maintenance and upkeep and taxes/insurance the property should operate indefinitely...(I guess war or natural disasters as well)
I really believe this is how everyone needs to be looking at running their businesses going forward...those who can provide the best incentives and value to their customers will be the businesses that succeed and those who are over-leveraged and can't afford to provide incentives to their customers are going to crash and burn hard....
Even those current businesses that are leveraged to the gills right now are going to find it really hard to compete against companies that are going to built on top of Bitcoin...especially once people start automating this process through a software and smart contracts....this is going to drive a whole new wave of adoption :)
reply
I just wish someone would run with this idea and build the app -
I am working on one with a buddy of mine...but it a long, hard road as I have zero developer skills and his....well....they are way better than mine but still not great :)
reply
reply
what type of app? mobile app, web app or both?
reply
I think the more the merrier :)
reply
If you aren't concerned about the downward volatility, which I didn't think you were from the post, then it seems like you could price in bitcoin and offer your tenants guarantees against upside volatility.
Let's say the fiat rent is about $1400 per month. You could price that at a slight discount of 0.020 BTC, with a stipulation that if BTC appreciates to $75k they only owe 0.019 BTC that month and rent will reset to reflect the new bitcoin exchange rate.
You probably see my point and there are lots of different ways to go about that. One of the nice things about doing something like that is the tenants would have an incentive to accumulate some bitcoin at the current price and then potentially get a nice discount later.
It seems like there are many win-win strategies you could pursue that also encourage more people to get into bitcoin. It's all very exciting.
reply