6/6 I expect this trend to continue.
#Realestate
investors understand the advantages of scarce assets in an inflationary environment. Once they realize the advantages of BTC over RE as a store of value, billions, even trillions in value will flow into
#Bitcoin
.
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Replies
🧵1/6 A significant portion of capital inflow into
#Bitcoin
in the coming bull market will come from real estate investors. Here's why 👇
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2/6
#Bitcoin
is primarily seen as an alternative to gold (market cap: $10 -12 T) due to its limited supply and excellent monetary properties. In fact, however, bitcoin is a competitor to the world's most used store of value,
#realestate
($330 T).
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3/6 If you think about it,
#Bitcoin
's properties reflect many of the value propositions of
#realestate
, in addition to inherently safer custody, easier maintenance, and, most importantly, the ability to liquidate or move your wealth in times of crisis.
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4/6 ≈ 67% of the world’s net wealth is currently stored in real estate. Given
#bitcoin
’s vastly superior properties as a store of value, it has the potential to absorb a significant portion of the monetary premium that
#realestate
carries as a store of value.
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5/6 We can already observe this dynamic. While the Bitcoin price is attractive due to its long-term price trend,
#realestate
is in crisis. Driven by high interest rates and lower demand. This encourages real estate investors to buy
#Bitcoin
.
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@Andi_Drost
To prevent this,
#realestate
developers must integrate Bitcoin into their financial structure. Fast 😎
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@Satillionaire21
I'm not sure. From personal conversations, I notice that
#realestate
investors are increasingly understanding
#Bitcoin
. In addition, some traditional real estate investors like
@GaryCardone
are becoming Bitcoiners.
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@leonwankum
I imagine the biggest barrier for RE investors looking at bitcoin is lack of leverage
They’re used to 10-25% down mortgages, piling up properties and flipping to even bigger ones
Also finding upside in good deals
Bitcoin by contrast … its just an inert fungible ledger entry
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@B_helpdesk
I agree, the “leverage” game doesn’t work with Bitcoin the same way it does with
#realestate
. But, leverage only works when interest rates are low and inflation rates are significantly lower than today. Currently that game is not working while
#Bitcoin
is increasing in value due…
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@leonwankum
How do you consider other aspects of real estate, such as income generation and tax benefits, in your evaluation?
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@leonwankum
OTOH, when Bitcoin moons, I see bitcoiners scrambling to get at the best premium real estate. I mean, you need to live somewhere nice, right?
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