We vastly underestimate what we can do with our physical labor. I just went to build a house with Casas por Cristo in Acuna, Mexico. It's a missions trip to build homes for poor people, where all the materials are ready to build and the volunteers essentially take all the material and build a house.
What was amazing about this was that it only took three days to build with about 15 people. And a significant part of that was waiting for the concrete to dry. And that's the house from founddation to roof, electrical to windows, drywall to stucco.
While machines and fancy equipment certainly speeds things up a lot, most of what can be done is still limited by human labor. And boy, is it amazing what that's capable of. Sure, it wasn't a huge house (maybe 500 sq ft), but it was fully functioning with insulation, metal roof, windows and doors. The bathroom was an addition that could be done in another couple of days. The big thing is that so much of it could be done so quickly.
You can build houses very efficiently and quickly even if the labor isn't very experienced. Which makes you wonder, why is housing so expensive?
There's a huge premium on housing because of fiat money being such a terrible savings vehicle, but the rot of fiat money goes much deeper. The labor itself is much more expensive, and there is a significant amount of rent seeking in the form of government regulations, like building codes. There's also the fact that building is considered very blue-collar, and most people aspire to white collar work. That in itself is a cultural norm that has proliferated via fiat money. Blue collar work, the kind that builds and fixes real things with hands, is considered below the people that sit on a computer making powerpoint presentations and word documents.
Now not all white collar jobs are bad. But there's no doubt that white collar jobs have proliferated because of fiat money. Look up any bureaucracies in any large industry and you'll see that they've grown like cancer. Health care, education, military, HR, government have bureaucracies that have significantly outpaced the people that do any real meaningful work. This is definitely not market competition and it's the opposite of capitalism. It's socialism that grows steadily from the money stolen from the productive people.
Which is why my experience is such a shock. I've become so used to things taking forever to build, that when I see human labor really doing something productive, I'm shocked at how effective it is. We've been so burdened with bureaucratic overhead in almost everything we do that watching people be productive is a shock.
One of the things I look forward to in a Bitcoin world is the unleashing of labor. Our work is what builds things, but it can also be used to steal. Unfortunately, fiat money incentivizes much more of the latter and less of the former. When our work is aligned with civilization, we'll really take off.
Come for the number go up, stay for civilization go up, beauty go up, building go up.
But there's no doubt that white collar jobs have proliferated because of fiat money
Why. There is a lot of desk job work to do on this planet actually.
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Both of those statements can be true (and I think they both are). Fiat pushes regular people to invest rather than save. which generates lots of jobs in finance. Also, fiat funds the bloated administrative state.
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Excellent observation.
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Yes but there's a massive difference between technical white collar work, which is value added, like an architect with building plans, or an engineer planning power lines; and the increase in non value added work like Compliance, HR (as opposed to 'Personnel') more layers of middle management etc. I'm speaking anecdotally but the latter is increasing exponentially in my experience. I think that's the point of that part of the article?
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I am excited by the prospect that housing would be demonetized by Bitcoin.
Bitcoiners like to talk about 1971 as a turning point, which, I agree is a thing, but I there is more to the story. Since the creation of the Mortgage Backed Security in 1981, the west has struggled decade over decade with rising costs of housing. It was the financialization of housing, and with it the constant bleed of fiat value, that got the west into this situation.
China rapidly emulated this from 00's, and is now struggling under the weight of real estate as a 'monetary savings vehicle' as it grows beyond the ability to service the debt, lower demand and a decreasing population base. Excessive debt must lead to expansion of the monetary base to service it, and with it, everyone takes the loss. Population decay will always lead to inflation, as there is more money supply and less people to use it.
Jimmy, it sounds like one could build a house for a few million sat. I look forward to the day that housing costs are insignificant, and humanity can concentrate on more productive economic output, rather than rent seeking.
Treating housing as money concentrates wealth in the hands of those wish to extort their fellow humans. We just need to keep the selfish people from gobbling up the supply, seeking rent, and let folks build value and increase their economic output. Bitcoin is the solution.
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I am becoming more convinced by the idea that Bitcoin is not digital gold, but digital real estate.
Housing has some value because people need a roof over their heads, but that doesn't explain why there are empty apartments in London and ghost cities in China. Real estate attracts a premium because a) The S2F ratio is higher than any other trad-fi asset in NIMBY zones (including gold) and b) It is excellent collateral for taking out loans against debasing currency because houses aren't easily lost, destroyed or stolen -- you simply cannot take out a $500k loan against a pile of gold with a 10% deposit.
So what you have with Bitcoin is an asset with a superior S2F as we all know, but also an asset that has pristine collateral properties. It cannot be lost or destroyed, and contracts can be settled unambiguously on-chain via multi-sig. The big players will start to exploit that by following the Saylor playbook and borrow against Bitcoin until there's no more fiat left to milk, and most value gets absorbed by the superior money.
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I can’t wait until MSTR gets added to the S&P500 index funds, and suddenly everyone has 1% Bitcoin exposure in their 401ks. Coming late 2024-2025!
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31 sats \ 1 reply \ @anon 9 Jan
Here also some amazing work done with hands by our fellow @DarthCoin:
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Very impressive, doesn't even need droids
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I met a guy in Austin a couple years ago who told me he was invested in 3D printing houses. Said it takes three people - concrete delivery, computer operator, laborer/finisher. He said it printed brick patterns or stucco siding, or whatever ,and painted it for visual effect.
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10 sats \ 1 reply \ @Fabs 9 Jan
What did he end up like?
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Don't know.
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This could hopefully change if we formulate a compelling Why. So my country set this goal to be 25% self-sufficient by the year 2030 iirc. Urban farming is becoming a trend, some youngsters are forsaking white collar jobs to do farming, gardening programs are getting popular in our secondary schools.
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Nice point of view.....
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Was any engineering done? Any plans or blueprints? Anyone analyze the soil? What about a water line and sewer line hook up? Was a flood plain study done to make sure this home isn’t flooded with a 5 year storm? It’s nice a group of people did this but I question the workmenship and overall quality of the home. 500 square feet is tiny! Jimmy couldn’t even fit his family of 9 in this structure. This is just a poor attempt to dunk on fiat. Sure it’s nice the poor are getting something but it is still substandard then what the majority of developed nations get for housing.
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