The world is in flux. Traditional assets are being devalued while an unlikely hero rises: Bitcoin. In the financial storm that we’re currently weathering, Bitcoin is standing tall, appearing to many as the apex property asset. This digital currency is rapidly moving beyond being merely a store of value and is now in the process of being monetized. This trend is likely to continue, causing consistent de-monetization of other key assets.
As we examine the big three asset categories: currency, bonds, and real estate, we are starting to see a dramatic shift. Key assets such as bonds are being de-monetized right before our eyes. Yet, amidst this chaos, Bitcoin stands as a beacon of hope for those seeking financial stability.
Take the example of real estate. This tangible asset has always been seen as a sound investment, a place to park your wealth for consistent growth. However, as Bitcoin gains prominence, it seems to be subtly changing the landscape. The question begs itself – how does Bitcoin de-monetize real estate?
Imagine owning a piece of commercial real estate, let’s say a two-million-dollar warehouse. Now envision a scenario where you could grant this property some of the inherent qualities of Bitcoin, making it infinitely better. First, you’d probably make the building last forever, literally immortal, free from decay and rust. Then you’d make it indestructible, immune to damage from hurricanes, earthquakes, or vandalism.
Furthermore, the building would become maintenance-free, eliminating insurance and upkeep costs. What about property taxes? Well, if the building was in cyberspace, there would be no property tax. If you could move the building anywhere instantly, like teleporting it to New York City or Tokyo based on demand, it would become more valuable still.
The property would also need to be adaptable. It should be possible to rent it out to anyone for any period, and even subdivide it as required. Ideally, it should morph into a different type of property if needed – a school, a sports stadium, or even a container ship, if that’s where the demand is.
All these ‘upgrades’ in your real estate property are closely paralleled to the qualities of Bitcoin. Bitcoin is indestructible, immune to local regulations and taxes, easily transferable, divisible, and adaptable. Its value is not tied to any physical manifestation, but to its coded properties.
However, the real game-changer is privacy. Making the property invisible to those who would do harm while being available to friends and family takes the concept of privacy to a new level. In a similar way, Bitcoin transactions can be conducted with a high degree of privacy, offering an unparalleled level of freedom from potential malefactors.
Additionally, consider the costs of buying and selling property – the fees are significant. In the world of Bitcoin, these transaction fees are minimal. This freedom from oppressive transaction fees further underscores the benefits of Bitcoin as an asset class.
Lastly, one of the most attractive aspects of Bitcoin is that it is unconfiscatable. Unlike a physical property, which could be seized by government action or eminent domain, Bitcoin provides a layer of security that traditional assets do not.
In Conclusion
The age of reliance on traditional, physical assets may be waning. Bitcoin, with its virtual, divisible, private, and unconfiscatable nature, has emerged as a compelling alternative. The challenge and opportunity of this digital age is to navigate these changes.
Sources:
- Michael Saylor’s perspective on the de-monetization of key assets, Bitcoin, and real estate
- Benzinga – https://www.benzinga.com/markets/cryptocurrency/21/08/22604628/bitcoin-vs-real-estate-which-is-the-smarter-investment
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