3 ms·
Problem is, homes have two functions: a place to live and a wealth preservation vehicle. As a result, many homes are owned by those who have no need to live in
by EVa5I7bHFq9mnYK 2y ago
Problem is, homes have two functions: a place to live and a wealth preservation vehicle. As a result, many homes are owned by those who have no need to live in that particular place. Bitcoin can substitute some wealth preservation functionality, because it has the same scarcity property as the land, thus improving the housing situation.
- James_K 2y agoAssets which purport to preserve wealth (outside of a bank account) usually end up as some kind of pyramid scheme. This is particularly unfortunate in the case of housing as the victims have no choice but to buy in, and take out increasingly large loans to pay off the previous generation's buy in. Bit coins are quite similar in structure, though they lack the forced buy in, which is why many of them are now attempting to target pensions funds and even lobbying to create official government reserves. (About half of all corporate spending in the last US election was crypto.)