ferenckovacs on Nostr: Many people correctly observe that buying real estate creates jobs and provides work ...
Many people correctly observe that buying real estate creates jobs and provides work for individuals and companies. A part of the #construction industry essentially produces “gold” – an asset that serves as a #storeofvalue, replacing the function of #money.
But what’s the problem with this? #RealEstate is fundamentally a product created for practical use. It’s not a cheap store of value, as its maintenance is costly and requires continuous expenses. It’s like earning interest in a bank but having a management fee of 1% per year – or even more.
So why is real estate still a good #investment? Because its value doesn’t diminish with #moneyprinting. When more money is printed, the price of everything rises – including that of completed properties.
But what’s the biggest issue here? The fact that people choose real estate as a store of value simply because there’s no better alternative. If we had a real, #inflation-proof form of money, reduced demand would lead to more affordable #housing prices. The construction industry could then focus on projects that create real #socialvalue.
Do we have a better store of value? Yes. We do. #Bitcoin 😊
Published at
2025-02-21 04:01:58Event JSON
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"content": "Many people correctly observe that buying real estate creates jobs and provides work for individuals and companies. A part of the #construction industry essentially produces “gold” – an asset that serves as a #storeofvalue, replacing the function of #money.\n\nBut what’s the problem with this? #RealEstate is fundamentally a product created for practical use. It’s not a cheap store of value, as its maintenance is costly and requires continuous expenses. It’s like earning interest in a bank but having a management fee of 1% per year – or even more.\n\nSo why is real estate still a good #investment? Because its value doesn’t diminish with #moneyprinting. When more money is printed, the price of everything rises – including that of completed properties.\n\nBut what’s the biggest issue here? The fact that people choose real estate as a store of value simply because there’s no better alternative. If we had a real, #inflation-proof form of money, reduced demand would lead to more affordable #housing prices. The construction industry could then focus on projects that create real #socialvalue.\n\nDo we have a better store of value? Yes. We do. #Bitcoin 😊\nhttps://m.primal.net/PFAr.jpg",
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