The 21st edition of The Bitcoin Newsletter “The Need To Protect Individual Freedom” is out. Link in bio. 🧡 https://leonawankum.substack.com/p/the-need-to-protect-individual-freedom

Most interesting ‚thing‘ I watched in a while. Opinions ?

„The difference between those who fail and those who succeed is their courage to act repeatedly“— @Carl B Menger

Joy of Compounding

Episode XVI. Block height: 844000. Everything, in time. Compounding is key because human time is scarce.

The digital disruption Bitcoin embodies to the real estate industry can be likened to the advent of email. Just as email and other internet-based messaging services revolutionized communication by becoming the primary means of sending messages, bitcoin holds the potential to transform the way we store and send value. It is conceivable that bitcoin could assume the role currently held by real estate as the foremost method of wealth preservation. This potential shift in the paradigm of value storage and transfer is reminiscent of how email and digital messaging have largely replaced traditional postal services, underscoring the profound impact of technological advancements on societal norms. #bitcoin #realestate

@gsovereignty when are you on at Bitcoin Atlantis ? 🙏

Bitcoin is primarily seen as an alternative to gold ($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, real estate ($330 T).

 In the global financial landscape, gold has seen a shift from its traditional role as the primary store of value. Since 1971, this pivotal role has transitioned to real estate, characterized by its potent mix of scarcity and appealing financing opportunities, establishing it globally as the primary store of value. The total value of global real estate has exceeded $330 trillion. In comparison, the value of all gold ever mined, estimated at $12.2 trillion, appears modest, accounting for just over 3% of global real estate value. 

 This development coincides with the “Nixxon shock” of August 15, 1971. When US President Richard Nixxon announced that the United States would end the convertibility of the US dollar into gold. Since the adoption of a fiat-based monetary system globally, with floating exchange rates and no currency standards, the money supply has steadily increased. This has driven investors to seek protection against inflation, with real estate emerging as a favored asset. Examining the annual growth rates of the money supply (M2) and housing prices in the U.S. reveals a discernible trend. Since 1971, the money supply (M2) had a compound annual growth rate of 6.9%, while housing prices had a compound annual growth rate of 5.7%. This illustrates a direct correlation between monetary expansion and rising real estate prices, underscoring real estate's longstanding role as a preferred store of value for safeguarding wealth against inflationary pressures. However, this characteristic is increasingly challenged by the emergence of Bitcoin.
 If you think about it, #bitcoin's characteristics 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. Real estate cannot compete with bitcoin as a store of value. Bitcoin is rarer, cheaper to maintain, more liquid, easier to move and harder to confiscate, tax or destroy. Given bitcoin’s vastly superior properties as a SoV, it has the potential to absorb a significant portion of the monetary premium that real estate carries as such. If 1% of global real estate equity was reallocated to bitcoin it could drive the price to $18 million +/bitcoin. The math: $330 trillion market cap global RE x 1% = $3.3 trillion. $3.3 trillion x 118 Bank of America study multiplier = $390 trillion. Current #Bitcoin market cap = $1 trillion. Total hypothetical bitcoin supply = 21 million. 391 trillion / 21 million = $18 million per bitcoin. The price would probably be even higher as many coins were lost... We can see in real time how the market recognizes the advantages of bitcoin over real estate for storing value. Swiss Bitcoin exchange Relai has reported that 75% of its OTC volumed came from real estate investors diversifying profits into bitcoin. I expect this trend to continue, particularly in the current market environment. With bitcoin's price presenting an appealing prospect against its anticipated long-term growth, while real estate is facing challenges due to rising interest rates and lower demand, which encourages investors to look into Bitcoin.

Bitcoin Magazine

Why Bitcoin Is Digital Real Estate

The properties of bitcoin reflect many of real estate’s value offers on top of fundamentally more secure custody.

I'm working on a newsletter that will dismantle the "Bitcoin has no cash-flow" narrative. Coming ‘end of this month! If you would like to sign up for my monthly newsletter 👇. #bitcoin #realestate #housing https://leonawankum.substack.com/

As a store of value, bitcoin has the capabilities of a house without the liabilities.

It was brought to my attention that Bitcoin’s indestructibility makes it a more resilient SoV. Not a better one. Resiliency is just one feature. That's correct. But resilience is very important in an unstable world where wealth has always been destroyed and is therefore a very important feature of an SOV. View quoted note →

Bitcoin will strip #realestate of its monetary premium.

A significant portion of capital inflow into Bitcoin in the coming bull market will come from #realestate investors. Here's why 👇 1. 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). 2. If you think about it, Bitcoin's characteristics reflect many of the value propositions of real estate, in addition to inherently safer custody, easier maintenance, and, most importantly, the ability to liquidate or move your wealth in times of crisis. 3. ≈ 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 real estate carries as a store of value. 4. We can already observe this dynamic. While the bitcoin price is attractive due to its long-term price trend, real estate is in crisis. Driven by high interest rates and lower demand. This encourages real estate investors to buy bitcoin (see attached article). 5. I expect this trend to continue. Real estate 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.

Bitcoin Magazine

Real Estate Investors Are Flocking To Bitcoin In Record Numbers, Says Swiss Exchange

Bitcoin is also rapidly siphoning capital from other traditional assets like securities and bonds, says the exchange.

5.

Bitcoin & Real Estate – I’m working on a book. 📖 In 2012, during my philosophy studies, I heard about Bitcoin for the first time. Since 2016, I have been working full-time in the real estate industry. For a long time I thought that real estate and Bitcoin didn't have much in common. But, this is not the case. Bitcoin and real estate are similar in many ways: hard, tangible, scarce. Scarcity has quite a lot to do with the value of things, which is why certain unique pieces of art are worth so much and why real estate in a densely populated area is more expensive than in a non-densely populated area (surferjim , 2020). Yes, RE has utility value because people pay rent to live in it or use it for production, but the value is primarily determined by the limited supply of building land. Bitcoin’s appeal also stems from the fact that its supply is limited. There will never be more than 21 M bitcoin. As a store of value, real estate competes with bitcoin. The properties associated with bitcoin make it an ideal store of value. The supply is finite, it is easily portable, divisible, durable, fungible, censorship-resistant and noncustodial. Real estate cannot compete with bitcoin as a store of value. Bitcoin is rarer, more liquid, easier to move and harder to confiscate. It can be sent anywhere in the world at almost no cost at the speed of light. This could have two consequences: 1. Bitcoin could reduce demand for real estate by acting as an easily accessible store of value that people may prefer to use for savings rather than real estate. 2. Real estate might lose the monetary premium it has accumulated in an inflationary financial system, which could flow into #bitcoin. A superior store of value. I have developed explicit strategies for real estate investors to integrate Bitcoin into their existing business processes. So that they can benefit from the digital disruption that Bitcoin represents Now I would like to take the time and compile the relevant articles that I have published into a book. The overall purpose of this book is to make people aware of the disruption that Bitcoin could bring to the real estate industry because it is a superior store of value. I will share the strategies I developed so that entrepreneurs can apply them in their businesses. I will also highlight the positive social and economic disruption caused by Bitcoin's digital disruption. The target audience of my book are RE investors and developers with an in depth knowledge about finance that want to understand why and how Bitcoin is going to disrupt the #realestate business and what particular strategies they have to learn and apply in order to benefit from this technological paradigm shift. A second target audience is people who have in-depth knowledge of Bitcoin and are interested in learning how it will revolutionize the real estate industry, the largest asset class in the world. Its disruption will therefore have fundamental implications for the global financial system and societies worldwide. Real estate is the world's most important store of value and the preferred form of collateral when banks lend money. Bitcoin will likely take on this role in the future. Digital Real Estate is thus the working title of the book. #Bitcoin #Realestate #DigitalRealEstate #book

I would like to thank you all for the positive feedback on my last podcast. The topics of Bitcoin and #realestate fascinate me. I will be publishing a series of papers on the topic this year.

It was an honour to discuss Bitcoin & #realestate with @preston.

Sharpening mind, body and soul. Day for day. Night for night.

How Cannabis Affects Disciplined People.

Balancing Bricks and Bytes: The Evolving Role of Bitcoin in #RealEstate - a new article of mine is online. https://en.coinfinity.co/blog/bitcoin-and-real-estate-leon-wankum

Bitcoin is pristine collateral for lending. Since #realestate development is very capital intensive, credit is important. That is, the more bitcoin you own, the more collateral you have to finance construction. We've discussed this in detail at Bitcoin Amsterdam.

Money is highly spiritual.

Some of my thoughts on what interest rates would look like under a Bitcoin standard? 👇 In a free market under hard money, the actual or market interest rate depends on various factors, in particular the supply and demand for capital. When the supply of capital exceeds demand, the market interest rate falls, while it rises when demand exceeds supply. The market interest rate is therefore the price at which capital is exchanged on the market. A net interest rate would likely emerge naturally. We can assume that the interest rate would reflect the general time preference of people in the economy. Under a Bitcoin standard, interest rates would likely be higher, as the risk of capital loss is higher with a finite money such as bitcoin than with a fiat currency. This will likely result in higher interest rates being demanded to compensate for the higher risk. Under a fiat standard, the "risk-free" interest rate is tied to inflation. A US Treasury bond with a yield of 5-6% would be considered risk-free, among other things, because the yield theoretically compensates for the loss of purchasing power that fiat money experiences. More importantly, the "risk-free" interest rate component of fiat money refers to a country's risk of default, which is generally considered very unlikely since states are able to produce money “endlessly”. The term "risk-free" is misleading. It does not exist per se. Opportunity costs exist always and everywhere and the market interest rate depends on various factors, including the risk of capital loss. There is also a historical certainty that any fiat currency will eventually go to zero, which is often not reflected in the fiat market's "risk-free" interest rate. Under a Bitcoin standard, the lowest risk component relates to the risk of loss of bitcoin held in self-custody. When stored in cold storage, those bitcoin are the holder’s alone and not in danger of confiscation or inflation by third parties. The lowest risk return for #bitcoin is directly related to productivity. Since bitcoin is finite, the value of individual units increases with human productivity. There is a risk of not participating in the increase in the value of bitcoin (deflation) in the event of a loss. The interest rate on a loan under a Bitcoin standard would likely be the deflation rate plus a risk premium to compensate for the potential loss of bitcoin. Full article:

Bitcoin Magazine

Bitcoin Will Completely Change Real Estate Markets And Interest Rates

Bitcoin as a new variable in global markets will have a drastic effect on other market prices the larger it grows.