I believe there's a solution to the housing crisis that no one seems to be talking about and it doesn't involve tax penalties against the wealthy or subsidies for the poor & working class. At this point, history has shown that no amount of government intervention will ever really solve this problem. There will ALWAYS be unintended consequences when we rely on humans to manipulate what would otherwise be free markets.
To understand the solution you have to acknowledge the #1 reason WHY the wealthy are pouring their cash into real estate & housing markets. The answer is something you hear about it ALL THE TIME. It's inflation! The mere existence of inflation incentivizes those with large profits & access to cheap debt to accumulate hard assets that will (at least) preserve that wealth and (at best) increase in value over time. It's blatantly obvious when you stop and think about it.
The more inflationary a monetary asset is (like dollars), the more likely it will be traded for something less inflationary (like housing).
Money printing = devaluation of the currency = hidden tax on the people = downright THEFT.When it costs nothing to print new dollars, politicians will spend whatever it takes to get and stay elected. They'll promise you they'll solve all of your problems if you just vote for THEIR side. They'll blame everyone else for the breakdown of society and the American Dream. But it's all just a distraction. It's a twisted game that everyone knows is insane but plays anyway because it's just "how the system works".
Unfortunately for regular people, housing is one of the best ways to build wealth in an inflationary economy but people NEED homes for shelter & stability. This monetization of housing in an inflationary economy is what prices regular people out of the market, resulting in widespread homelessness and a nation of renters.
The SOLUTION to this problem is simple. What if there was a harder monetary asset than real estate & housing? You could say there are some great companies on the S&P 500 but that involves a great amount of speculation and counter party risk.
What if investors could park their cash in something so provably scarce with unlimited global demand & safe from any company or government capture?
That solution is obviously Bitcoin.. JUST BITCOIN. Not Ethereum or any other doggy-themed crap coin. Bitcoin WILL FIX the housing crisis simply by being a scarce, incorruptible monetary store of value.
I'm not here to explain why Bitcoin makes a great money. Thousands of videos, articles, podcasts & books do a great job of explaining that. Check out my study page for some educational resources.
Bitcoin adoption is already ticking up all around the world. Small circular economies are popping up in places that suffer the most from corrupt central planners like the Fed, ECB, IMF & World Bank. As of Jan 11, 2023 we now have approved Bitcoin spot ETFs in the United States. The train is here and it will leave with or without you.
Fortunately for the people, storing value in Bitcoin will eventually be seen as the ETHICAL & MORAL choice because of the impact real estate investing has on homelessness.
But at the end of the day INCENTIVES are EVERYTHING and most investors would much rather hold Bitcoin (once they understand it) than doing all the work & paying all the taxes that goes into being America’s landlords.
Housing & real estate WILL be demonetized over time. I'm not sure how quickly it will happen, but housing will trend toward it's utility value as savers & investors would rather simplify their lives and hold Bitcoin instead.
If you don’t understand this, you don’t yet understand Bitcoin. We’ve suffered enough under this twisted Keynesian economic horror show. It’s time to get back on track toward a more prosperous & peaceful world with a truly free market built on a foundation of HARD MONEY and Bitcoin is the only thing out there that works in the digital age.
Don’t take my word for it. Set your assumptions & agendas aside and go #StudyBitcoin for yourself.
So what do you think? Do you agree or disagree? Did I get anything wrong?
Happy Stacking!
-Trey, Café Satoshi
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I'm not a finance or real estate expert. I've never even owned a home. I'm just a regular guy tumbling down Bitcoin rabbit hole. These are just my personal observations and should not be considered financial advice in any way.
As I approach middle age, I began looking for ways to store wealth. After you have a certain amount, it makes sense to look for places to store the excess. I had always told my wife that real estate investing seemed unethical to me…the monetization of a human need. Like hoarding food when others are starving. When I learned about Bitcoin it all made sense. Bitcoin is an ethical, humane, collective store of value. No more zero sum games. Microstrategy buys BTC? Great! Developing nations buy BTC? Great! All holders benefit from ANYONE storing value in BTC. And for the first time in history, ANYONE can be a holder and partake in the benefits. People in Africa and South America…