There are roughly 11 types of risk in commercial #realestate and putting bitcoin on the balance sheet helps mitigate 4 of them.
Macro risk: holding an asset that consistently increases its purchasing power can help weather economic downturns.
Interest rate risk: when rates go up, cash flow valuations go down; BTC has shown that it can rebound quickly from interest rate shock and over time it will further decouple from rates as it becomes seen as risk-off.
Inflation risk: consistent purchasing power growth abates the old concept of constantly escalating rent to keep up with inflation, meaning more price stability and better occupancy rates.
Liquidity risk: buildings are illiquid, so having BTC on the balance sheet allows the operator to quickly deploy capital without having to market a property for 6-12+ months.
Thanks to leonwankum (npub1v5k…8rd9) and preston (npub1s5y…6q7z) for getting this conversation started.
/ todmann67
npub1n8…a72hl
2024-02-04 17:18:18
Author Public Key
npub1n8pdnhkukhs4xa0a74u9zkhqfcw39h48xcte4gkp8d8c4s2rx45qua72hlPublished at
2024-02-04 17:18:18Event JSON
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"content": "There are roughly 11 types of risk in commercial #realestate and putting bitcoin on the balance sheet helps mitigate 4 of them.\nMacro risk: holding an asset that consistently increases its purchasing power can help weather economic downturns. \nInterest rate risk: when rates go up, cash flow valuations go down; BTC has shown that it can rebound quickly from interest rate shock and over time it will further decouple from rates as it becomes seen as risk-off. \nInflation risk: consistent purchasing power growth abates the old concept of constantly escalating rent to keep up with inflation, meaning more price stability and better occupancy rates. \nLiquidity risk: buildings are illiquid, so having BTC on the balance sheet allows the operator to quickly deploy capital without having to market a property for 6-12+ months. \n\nThanks to nostr:npub1v5k43t905yz6lpr4crlgq2d99e7ahsehk27eex9mz7s3rhzvmesqum8rd9 and nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z for getting this conversation started.",
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}