Rajat Soni, CFA
Rajat Soni, CFA

@rajatsonifnance

8 Tweets 1 reads Jan 15, 2024
Real estate is a massive bubble because most people use it as a store of value.
How many times have you heard people say "A house is a forced savings account"?
(THREAD 👇)
In terms of fiat currencies, real estate prices will continue to explode upward.
In a few years a house that costs $500,000 today will cost $1,000,000.
When you measure prices in terms of a dying currency, your cost of living will ALWAYS go up.
Now think about the cost of living in terms of #Bitcoin. The house that cost 60,000 #BTC 12 years ago costs less than 20 BTC today.
This is what happens when you use a better form of money to save for the future.
Bitcoin is more scarce than houses - you can build more houses, but you can never increase the supply of Bitcoin after all 21,000,000 BTC are mined.
This scarcity will make it so that home prices decrease in terms of BTC 𝘧𝘰𝘳𝘦𝘷𝘦𝘳.
Real estate prices will continue to rise in US Dollars because houses are harder to create than US Dollars.
This is what the "hardness" of money refers to.
Something that is difficult to produce more of is harder money than something that can be produced at will.
This doesn't just apply to houses. It applies to everything we spend our money on and consume.
In terms of government issued currencies your cost of living will NEVER decrease.
In terms of Bitcoin it will ALWAYS decrease (as long as its remains scarce).
Saving in the right form of money is the most important decision you can make.
Learn about Bitcoin.
Your future self will thank you.
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