I got into a conversation with a neighbor yesterday. This was face to face. More and more rare nowadays.
She's a mom. One of her sons is the same age as our oldest son: 26. I coached both of them in Little League. I feel old saying that. LOL.
We got on the subject of housing. Both our sons were in the market to buy a house around here.
They both came up shorthanded. They couldn't afford them.
Like most areas housing became unaffordable for people just starting out during Covid. Housing and land prices more than doubled.
I tried to explain why I thought this happened. I don't think I did a very good job.
I'm going to try again here. Partly in the spirit of becoming a better writer and thinker.
Like Kurt Vonnegut said, "If you can't write clearly, you probably don't think nearly as well as you think you do."
So here we go.
I think those with money have to find a place to park their cash. So they use real estate as a "store of value."
They can make money off their money buying real estate. If they keep it in a savings it would lose value due to inflation.
For years our family did this. I knew better. When I was single, in my late teens and early 20's, I thought I could get off the hamster wheel by saving money. So I owned mutual funds through Vanguard in my late teens and early 20''s.
My money made more money in Vanguard than our local bank.
Then I read Ishmael, quit working, gave up on our current system, and embarked on a learning journey to understand why why why. Back to Vonnegut again:
"Tiger got to hunt, bird got to fly; Man got to sit and wonder 'why, why, why?' Tiger got to sleep, bird got to land; Man got to tell himself he understand”
Back to our sons and store of value.
I told her my hope is Bitcoin starts to make housing more affordable around here again.
Why?
Because those with money can make a lot more money off their money buying Bitcoin. It's a better"store of value."
So they'll pull their money out of real estate and park it in Bitcoin.
And maybe, just maybe, housing will not be used so much as a savings account and more for utility. 🤞
(A current photo from our neighborhood. The Bean Brook at dusk.)
#bitcoin #realestate #money
