I cant remember when/in which context he said this, but i believe he did and now i believe i know why.
real estate is shitcoin
If the price increases enough, then that gives people/developers incentive to create more. The same is true with gold and silver. Shitcoins. I've repeated it before to be belligerent instigator, but i hadn't really known why i was saying it, but thanks to Jack Maller's podcast today, it finally cliced (yea yea maybe he's fiat maxi, gfy!)
Higher the price goes, more supply comes onto market. Don't really care if this is self-evident to some of you, but i'm lesrning and now i get it. Buy Bitcoin.
Eh, I think that's a bit of a stretch. Most shitcoins are literally shit created out of thin air with no purpose other than pumping and dumping.
Real estate can be built, but it takes work and effort and materials. Land, especially land in a good location, is also in limited supply.
Bitcoiners don't have to be hostile to everything non-bitcoin
I have never been a fan of the "everything is a shitcoin" thing. It's hyperbolic. I think people use it that way and far too many take them literally.
Shitcoins are usually literally worthless ponzi schemes. Real Estate has actual utility but of course the state and the fiat banking system have manipulated the markets and distorted them.
Land is a scarce resource and homes have actual value. I'm more of a fan of comparing and contrasting vs oversimplification and generalizations. I love Saif's books but this is a point I disagree with him on.
Of course I agree with both of you but there is also a lot of artificial scarcity and price manipulation that benefits current bag holders, so it’s not entirely off the mark as an analogy.
Well, that's the point. It's more hyperbolic than accurate. Real Estate is inflated by the fiat system just isn't a quipy but is more accurate. He knows this. He uses the term for effect. Just not my style. It's great for preaching to the chior but not to outsiders.
The other thing is real estate as an investment is different from real estate as a citadel. A home. Real Estate and homes are used as savings vehicles and that's flawed. Bitcoin is better. But you can't live in a bitcoin. Understanding how to use things and how not to is key.
More than being inflated by fiat, prices are arbitrarily inflated by the state holding so much land off the market. That means it’s vulnerable to a rug pull if those restrictions are ever repealed.
To me, that’s an important distinction between real estate and other goods that are produced according to their costs of development.
I take your point.
Isnt "Flipping" houses essentially this over a longer time horizon?
Add to that the diminishing quality of building materials and the amount that this done thru financing, and how far really have we strayed?
Most flips are actually value-adds, where the flipper buys an old dilapidated house and upgrades it and resells it at a profit. Which is just normal economic activity. Of course, there may be some price speculation and unwise debt financing, but that doesn't make the underlying activity itself illegitimate or unethical.
Dunno much regarding quality of building materials. I did recently visit Toledo in Spain and seeing the gorgeous architecture which has lasted centuries made me wonder why we don't build anything as lasting in the modern world.
Somewhat tangentially -- i recently heard an alt(shit)coiner try to explain the ethics of their activity by saying that money-making has always been about people figuring out ways of exploiting others (a less eloquent paraphrase). By no means do I agree.
Shitcoins/nfts and the like have the shadowy semblance of this, perhaps, leaving out the value-added part.
Really?!
Kep hitt it on the head a difference between a home and a house. There's this thing thats been planted in us to expect to own a house..I see people who cant afford much risking it all for a house...more of a status thing for alot I see it especially in fiatlandia.. its cool if someone has a house even cooler to meet someone all in on BTC..even though u cant live in a btc u can go and live however wherever u want..also no upkeep cost house needs constant upkeep..my 2 sats
real estate is highly leveraged upon fiat debt.
most new fiat is created as debt on real estate.
since neoliberal deregulation allowed commercial banks to issue new fiat toward any purpose the above has been accelerated and that debt drove up real estate prices.
Since 1990 interest rates declined, driving real estate prices up.
Today the price of debt cannot go up or down much without collapsing the entire fiat monetary system- thus real estate is now not such a great bet.
The difference is that in real estate there is usually a tangible improvement made to the asset that can increase its utility even if the quality of materials declines over years. Shitcoins on the other hand often have no functional improvement just marketing and hype.
It is worth separating the concept of speculative behavior from the nature of the asset. Bitcoin’s appeal rests on a hard cap that prevents dilution once you understand that dynamic it makes sense to be wary of any market where new supply can be created at will whether through token minting or through rapid development. However equating all non Bitcoin assets to worthless tokens misses the nuance of why people value tangible goods and income producing property.