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10 sats \ 2 replies \ @Voldemort 11 Jan \ on: How Things Get "Cheaper in Bitcoin" Personal_Finance
I just had a similar post yesterday (that didn't get any traction) but I was thinking about it differently.
In terms of saving money/store of value - I am with you 100%. In terms of buying a house (as you have laid out in the table), I think of it the opposite way.
If I bought a home in 2018 with 100 bitcoin, the house would be worth maybe 400-500k in 2023. The bitcoin I used to buy it would be worth $4.4M. Of course the difference becomes less dramatic if I were to buy a home with bitcoin in 2023 (assuming cost of a house in 2023 is 10 bitcoin again it would still be a big loss by 2028 with btc at $250k), but I would still not make that deal.
The tables I made are definitely over simplified - can't get the same house for $300k today that you'd get 5 years ago, etc. Plus then you're paying rent or whatever in the meantime.
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Totally, but the principle applies. If the thing you buy something with gains value faster than the thing you bought then you are effectively losing money.
I would not make a big purchase with bitcoin today. In your example about buying bitcoin in 2018 and then buying a car in 2023, that 0.81 bitcoin used in 2023 to buy a car would be worth ~200k in 2028. Obviously one is far better off holding bitcoin than holding dollars, but it would poor financial decision to buy a car with bitcoin right now.
As a very real example, I bought SOL at $20. I sold 25 of them at like $35 to buy concert tickets. Of course I still made money with my SOL and so I effectively paid $500 for $800 tickets, but the opportunity cost of buying those tickets was a couple thousand dollars.
That is the math. Your argument is the $500 for $800 tickets. That is undoubtedly a great deal. My argument is the if i had the 25 SOL they would be worth $2500 now. Not such a great deal.
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