I wrote part of this as a reply to another article but it seems fitting to post it here and go into a little more depth with it, as it seems like a pretty important concept for us (bitcoiners) to understand....
It just seems to me that Bitcoin is a system of value communication that is completely opposite to the FIAT system.... Under FIAT you have inflation to the monetary supply making the which lessons the purchasing power of the future supply.... I think this is a more widely understood concept... Your $100.00 USD today will buy you less tomorrow or 10 years from now
On a Bitcoin System you have an ever increasing amount of purchasing power due to its scarce supply.... Your 100 sats purchase today will only cost you 90 sats tomorrow or 10 years from now.... This concept seems to be much more difficult for people to understand...
However, we are Bitcoiners here...and hopefully if you are reading this, you understand that....I think what is more difficult to then comprehend is the next order effects of what this does to each and every system we currently operate on... I think previously I have stated that Bitcoin literally overwrites each and every system we have...this is every system you can think of....I can't think of a system that won't be impacted one way or another by Bitcoin...
Anyway back to the Business Model and property management in particular...Being built on a Bitcoin Standard
I posit that entrepreneurs' that build businesses that excrete value the most will be the most successful in the long term (as they will be the businesses providing the most utility/value to their customers - of which they are looking for the best value for their Bitcoin)??
- I think this is important to remember - we are not simply building businesses that utilize Bitcoin for ourselves or for the corporation, we are building businesses that will need to incentivize their customer to come and use their widget or live in their property...Similar to how things operate today where the customer is looking for the best bang for their buck....however it is different on Bitcoin as that customer currently has a very large desire to hodl their Bitcoin and get rid of their FIAT...They are not going to be as incentivized to utilize BTC as payment for a simple 10-20% discount on something (In FIAT terms) as they will weigh the potential future buying power of that BTC against their ever inflating FIAT cuck bucks...
If the customer/consumer you are looking to attract is looking for the best value? Businesses that are able to lower their prices in BTC terms over term are going to be the successful businesses....These are going to be the businesses that manage their cash/BTC flows wisely and truly leverage the BTC network effects to underwrite the future value of their businesses. For instance, if I am able to lower my rent in BTC terms indefinitely and all but eliminate my future FIAT needs at my property, I reckon I will have Bitcoiners knocking my door down to be able to move into my property...while my neighbor who is over leveraged and spends all their FIAT cash flow on vacations for themselves or fancy cars that they don't really need will slowly and surely find themselves in bind when more "Bitcoiners like me" buy buildings and lower rents in the markets they operate in...those FIAT maxi's will surely be selling me their buildings at a loss or I will buy them out of foreclosure as at some point....the tipping point is met and they simply get caught overleveraged and under funded to beat me.
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Businesses that spend more value than they create will be among the first to go....
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Businesses that create the most value and that are able to share that value with their customer's will be the most successful over the long term.
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All businesses will be somewhere in between these two categories I imagine...I am already reducing the rent all my residents are paying as my BTC savings are able to offset the need continuously raise the rent and those that are paying me rent in BTC are benefitting even more by utilizing the shared % I offer them on the increased FIAT value of their paid BTC to me. So they are seeing maximum value being returned to them...Sure this delays my ability to benefit from the BTC they pay for 6 months....but in the big scheme of things that is nothing...My properties will be fully collateralized by BTC sooner than my competitors who do not and will not ever use BTC (this is that idea of the guy who discovered the heart pumps blood around the body and stated no doctor over 40 would ever believe him) Very, very, very few owners of real estate period are likely adopt BTC in the next 5-10 years....and those of us who do, certainly have first mover's advantage...
Anyway - I think that is good for the day....look forward to any discussion (good, bad, or ugly)....