Will It Ever Be a Good Idea To Trade Bitcoin For a House?
House prices have been going up at a tear these recent years.
However, that is not much compared to bitcoin.
Just a few short years ago, it took over 100 bitcoin to buy the average house.
Now it is about 10 bitcoin
At the end of this bullrun, it will probably be 1 bitcoin.
Will it be worth it to trade 1 bitcoin for a house?
You know that, soon, it will only cost 0.1 bitcoin for a house, and then 0.01 bitcoin?
Never
It will never be a good economic choice to trade bitcoin for a suburban home.
Trading an asset that is going up for a liability that is going down does not make financial sense.
Bitcoin is just entering adoption. It will either go to infinity, or to zero. (infinity = everything is going to zero against bitcoin) And since it appears that we have entered adoption, it looks like we will have a lot of upward movement.
Houses on the other hand, suburban houses especially, are starting to decline. It looks like the bubble has burst. We will, at least, have another 2008 crash, however i am betting that suburban real estate will go to zero in many places. Ageing demographics will put tons of homes on the market. VAXXX deaths will put even more homes on the market. Crime, poverty, food shortages, inflation will make suburban house prices crash even more. And, if that wasn't enough, the banks are all going to go bust, so there won't be any mortgages.
Suburban homes will crash to zero. No one will live there.
So, economically speaking, trading bitcoin for a suburban house is a waste.
You need a place to sleep
Your body doesn't care about economics. It needs a safe place to sleep.
And, in today's world, it is becoming more and more dangerous to deal with banks (and insurance, and the govern-cement).
Such as, in Florida, insurance is becoming so expensive that many are being forced to sell their houses. They have to because their mortgage says that they need to keep their house insured.
There are a lot of cases where the insurance company is telling the HOA of a condo project, that they need to put on a new roof, or upgrade this or that. So, suddenly, condo owners need to come up with tens of thousands of dollars. It has become too costly to live in the condo that they own.
And this is coming for the world as banks and insurance and regulations tighten their grips around people's lives. All of them want more profit, and less exposure to risk (yes, insurance companies are all moving to insure only the low risk people), times are hard.
However, those actions are really bad for the people. The homeowners. Just when they are getting squeezed by higher gas and food prices, now the financial sector is adding more hurt.
Knowing all of this, if you can pay off your house, it might be a very good thing to do.
This is not financial advice, this is survival advice.
Bitcoin go up, Housing go down
There is a time in the future where you will have more than enough bitcoin to live the rest of your life without working for money.
In the future, people will celibate when their children have gotten their first full satoshi. A satoshi, something that is given away in faucets today, will be a major milestone in people's lives.
Bitcoin will continue to go up. They talk today about 0.25 bitcoin being all you will need to be very well off.
So, if you have two bitcoin, then trading one of them for a house may be a wise choice for you. You have a house, paid off, and so have just lowered your living expenses drastically. And lowered your anxiety levels a lot.
You may want to plan your life around this. The top of the bull market is probably only a year away. So, start looking for a house in a place away from flash-point cities, then watch as the house prices go down and bitcoin goes up. And when things get to about the right levels, purchase your house.
It will never make financial sense to trade your bitcoin for a house. However, peace of mind, or future proofing your life, may make this exchange very good for you.
You may want to look into bitcoin backed loans. Getting dollars by putting up your bitcoin as collateral. Then you don't really have to sell your bitcoin, but remember, there will most likely be a crash after this bull run. So, by the end of 2025 you will probably need 4 times as much bitcoin backing your loan.
I do not know if these loans will get easier or harder. My gut feeling is that they will get harder in the Defi world, but will get easier in the banking world. As more banks recognized bitcoin as a tier 1 asset. (Today, if you have a million dollars in the bank, you can get a loan with that as collateral. It will be similar with bitcoin.)
What is weird is that it may be easier to get a loan on your bitcoin than to sell your bitcoin.
There are troubles coming, and owning your house, without the banks being involved may be the most important thing.
As always, if you can get out of the cities and into some place where you can grow your own food and live comfortably, then i highly suggest doing that. A homestead will be VERY valuable in the future. Not at all comparable to just a house.