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Unlocking the Power of Bitcoin for Homeownership

By ⚡ Daniela ⚡ | Me and Bitcoin | 9 Jun 2023


The issue of affordable housing is not a new one. It has been faced by large segments of the population in both developed and developing nations for decades. The current situation is exacerbated by the fact that currencies worldwide are losing purchasing power, leading to an increase in demand for safe ways to store wealth.

Real estate has long been seen as a hard asset that holds more value than inflationary currency due to its scarcity. Speculators leverage this situation with cheap credit and rising future cash flows, creating artificial scarcity that drives prices upwards.

However, these incentives have created rent-seekers who use interest rate apartheid to acquire capital at favourable rates. They then monopolize supply and force others to pay back their debt while leveraging their portfolio to acquire even more real estate. This structure has led to unseen economic losses that are not factored into calculating the "value" of the real estate market.

While some feel that land is scarce, modern technology has expanded cities and made it possible for us to live in harsher climates - proving there is still plenty of land available for development. Unlike Bitcoin where supply remains fixed regardless if demand increases or decreases; as demand for property rises, so too can supply through new construction projects or repurposing existing properties (e.g., demolition).

As we discover new ways of developing real estate and increasing supply - such as high-rises replacing single-family homes or converting industrial buildings into flats - holders will be diluted unless they maintain premium pricing through government regulations or lack access to capital markets.

Inflationary finance means every time someone buys a home it adds new monetary units which chase after limited inventory making prices rise further over time- but rather ironically given all this talk about inflation - Real Estate may actually be deflationary since because if everyone builds houses then there's no shortage left!

Indeed, there are many potential solutions to the current issues facing the real estate market. One such solution is the use of innovative construction methods and materials that can make housing more affordable and sustainable.

For example, 3D printing technology has already been used to construct entire houses in a matter of days at a fraction of traditional building costs. This could be particularly useful for developing nations where access to affordable housing is most limited.

Finally, governments around the world have recognized the need for more affordable housing options and have implemented policies aimed at increasing supply through zoning reforms and incentives for developers who build low-cost units.

However, despite all these potential solutions, there are still many challenges facing the real estate market today. One such challenge is the lack of transparency surrounding property ownership which leads to corruption, frauds, land-grabbing by powerful actors etc.

Moreover, due to rising inequality worldwide coupled with globalization trends; we see people moving from one part of the world into another which creates huge demand-supply mismatch in different regions leading again towards affordability issues within certain areas/regions/cities.

Furthermore, Real Estate Investors & Developers lobby governments worldwide against implementing any serious reform measures since they fear losing their profits derived from rental income streams /capital gains on properties held long term - hence why government regulations remain lax even though they know it causes problems down the line.

Therefore, although there are certainly opportunities available (e.g., innovative construction methods/materials), we need to recognize that there are still many challenges facing the real estate market today. To overcome them, we must work together to find new solutions that meet the needs of everyone and create a fairer society for all.

 

HODL Your Bitcoin and Borrow a House Instead!

The introduction of Bitcoin into the real estate market has the potential to completely change how we approach homeownership. Instead of traditional borrowing methods that involve new currency creation through debt contracts, individuals can use their Bitcoin holdings as collateral to borrow a house. This may seem like an unconventional concept at first glance, but it could revolutionize the way we think about homeownership.

House lenders have always had inventory available for purchase or rental, while Bitcoin holders often struggle with finding secure ways to store and utilize their assets. By using Bitcoin as collateral for housing loans, both parties benefit from this arrangement. The borrower gets access to safe and affordable housing while retaining control over their valuable digital assets without having to sell them off or convert them into fiat currency.

Under this system, the borrower would pay monthly interest payments on the loaned property, just like they would in any other mortgage agreement. If for some reason they are unable to make these payments and default on their loan obligations, then the lender has legal recourse against them - including seizing any bitcoin held as collateral.

This structure benefits all involved parties since bitcoin is more valuable than most homes today due to its scarcity; hence why investors see it as a strong hedge against inflationary currencies worldwide - which will only increase demand further over time - making it even more scarce!

Additionally, because of its decentralized nature and lack of intermediaries such as banks or government agencies; transactions between borrowers and lenders can be completed almost instantly - reducing transaction fees/costs associated with conventional lending methods significantly!

Furthermore, transparency issues surrounding real estate ownership in many countries around the world such corruption/fraud/illicit land-grabbing etc; makes implementation of innovative solutions difficult since current regulations do not favour complete transparency in order to protect vested interests who profit from opacity.

However, with the advent of blockchain technology and its ability to provide immutable records of ownership/transactions; this could change since it will make it much easier for governments worldwide to track down fraudsters who manipulate property records in their favour - hence bringing transparency back into real estate markets once again!

 

In the end, properties are getting cheaper if you're living on Bitcoin standard. The longer you save in sats, the cheaper (more affordable) your home becomes.

Simple Bitcoin Math:

The 80,000 EUR house in (May) 2014 = 165 BTC

The 110,000 EUR house in (May) 2017 = 55 BTC

The 150,000 EUR house in (May) 2020 = 17.5 BTC

The 280,000 EUR house in (May) 2023 = 11.5 BTC

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⚡ Daniela ⚡
⚡ Daniela ⚡

As a passionate writer with a keen interest in exploring innovative technologies, I discovered the captivating world of Bitcoin. Here to write my thoughts.


Me and Bitcoin
Me and Bitcoin

This blog focuses exclusively on Bitcoin, covering various aspects related to the cryptocurrency. It explores Bitcoin's history, its economic principles, and its potential implications in the financial world. The blog also delves into the potential impact of Bitcoin adoption on economics, politics, and society as a whole.

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