But the minimum down payment is not 100k, itβs 17,500. So he could still βbuyβ 82,500 worth of bitcoin, when purchasing the house, which seems to be lacking in the analysis. So the opportunity cost is not as great as is indicated, AND increasing cash flows needed to service the rent are not included vs a fixed rate mortgage payment, which is assumed to be covered by cashflow for the life of the loan.
Login to reply
Replies (2)
Very good point. Rent is sure to increase massively over the duration of a 30 year fixed.
In my original post, I calculated that rent would increase 3.2% annually which is the average.