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Problems with estimating infrastructure costs start at the very beginning, due to the often-complicated process of running cost estimates. The political pressure to keep costs low can result in unrealistic projections. More frequently, the agencies starting new projects, such as roads, train lines or school facilities, fail to account for all the variables in construction. Construction projects are unpredictable even in the best of circumstances — much more so when they involve large-scale excavation or butt up against homes and businesses.
Will this be true on a bitcoin standard?
This is a pretty common sense article. I often wonder if a bitcoin standard will fix this? I don’t think it will. Construction projects face so much risk estimating for costs on a bitcoin standard will be tough. One might think will over time the price of things go down against bitcoin in fiat terms but what about actual energy and labor. Something I often think about.
182 sats \ 1 reply \ @grayruby 30 Jul
All of these are part of it but another factor is sunk cost. Once you are part of the way through it is not usually feasible to kick out one construction company and bring in another so you just suck it up and pay the overages.
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Yeah that’s true
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"Why Construction Projects Always Cost More Than Estimated?" because of corruption and fiat money. On a bitcoin standard costs will be easy to estimate and will often come out lower than expected. So you won't feel much need to fix costs and if you do the builder will likely throw in some extras for you to get the next job.
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Hopefully but prices are always set at the margin even on a bitcoin standard. If supply is restricted for a material why wouldn’t a supplier raise his sat price if someone is willing to pay for it. Plus bitcoin isn’t going to stop corruption. It will be harder to hide the open ledger
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Construction always takes longer than expected. I have learned that on maintenance, too. Every time I want to work on my car, it seems to take longer than I projected. Sometimes by a week. Its better when the projects are estimated correctly, so that the time and money will be known going in.
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