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@ mypathtofire
2024-01-26 21:26:45
There was a great meme from Wojak about Wen will Bitconi demonitise Gold. This could come quicker than we think, especially even some banks are thinking that there will be a faster Bitcoin adoption than when the Gold ETF was launched.
Gold has around a $12 Trillion market cap according to recent data and it will be interesting to see how quickly Bitocoin erodes into this in the next 2 years.
Bitcoin will surely catch up and easily overtake Gold's marketcap in the next few years in my opinion, especially with the mediocre returns from holding gold, just look at Peter Schiff. The real test will come however when it comes to real estate.
Real estate is another beast from gold though and it will not go down without a fight. According to the Bitcoin Prague presentation by Michael Saylor, the real estate market is worth over $330 Trillion, which is a massive number in magnitude to that of gold.
The other thing to remember is that real estate is used by the fiat central bankers as a faucet to pump more fiat debt into the system. If this faucet starts to dry up, they would need to resort to more imaginative ways to indebten people or the whole system could start to collapse.
There are many tax benefits given to those who take on debt to buy real estate in many countries. Many people can write off the interest payments on their tax bills, other can avoid capital gains taxs by hodling real estate. This causes people to take on large amounts of debt and pump up the price of housing and cause huge bubbles that the next generation are supposed to take on and keep the system going.
In the slide by Michael Saylor, he predicts Bitcoin could take maybe 15% of the real esate market cap and has the potential to take half of it, which would be huge from where we currently are.
50% of $330 Trillion would add $165 Trillion to Bitcoins market cap and it would be hard to put a price on a Satoshi if that happens, let a lone a full Bitcoin.
Would there be some reaction from the Banks when they lose a major fiat debt faucet though? How would they react and would they try to make taking on debt for houses even more attractive than the ultra-low rates we have had in recent years?
If Bitcoin starts making inroads into people investing in Bitcoin instead of taking debt to buy real estate, it could possibly trigger a huge deflation in the fiat world for real estate as people abandon buying extra apartments to rent out and instead and less liquidity would be flowing in the system.
What are your thoughts on how Bitcoin will affect the real estate market?
Thanks for reading.
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