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6 sats \ 6 replies \ @TomK 6 Oct 2023 \ on: How does Bitcoin help fix the housing and rental markets? 🤔😮💨 bitcoin
By changing incentives. People and investors will learn that real estate isn't a money box - the rising yields over the next decade will teach them, rising counterparty risk will move them.
Perhaps. This is assuming Bitcoin, priced in fiat, keeps pumping and interest rates stay high.
Interest rates drop, more pressure on housing demand.
Bitcoin stays flat - incentives aren't as strong for many normies.
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I think interest rates will be rising sharply this decade. Markets try to get rid of over-indebtedness (is this actually a word??). People will learn that real estate prices are falling (deflating) in most regions and that there is a risk taking up hundreds of thousands of debt privately.
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Interesting.
I mean, the whole system is managed by making sure people and businesses do NOT have to ever fully repay their debts. If they did - the whole thing blows up. So assuming the interest rates will stay and go higher - although it ought to reset all the bad debt - it would tank and blow up the economy. And the policy makers won't do this. They'll likely lower the rates so people can prop up the economy by taking a bit more debt and keeping the circus going.
Do markets actually try to rid themselves of bad debt? Maybe a more natural one... But this economic fiat system is so artificial.
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The state, with its cb, of course can manipulate the price of money over a certain time - until the bond market is saturated which seems to be very close if not overshoot already.
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Not to mention the government interventions coming. They'll do anything to keep it going as long as it can.
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Bitcoin is a black hole my friend
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