[ashwagary]

Bad money (like inflationary fiat currency) creates the need to use other assets to preserve wealth, which creates bubbles in those assets.

Bitcoin advocates say good money (Bitcoin) will return the value of all other assets to their utility value because the best passive store of value will be the money itself (which due to a fixed supply would be deflationary).

In that world, people would rather sell assets they don't use to accumulate bitcoin (or money x) because only useful activities will produce more yield than the money itself. This frees up housing, land, precious metals,... and all other resources that are artificially scarce due to hoarding for wealth preservation.

I've heard people estimate, under a Bitcoin standard, the actual utility value of a house would be approximately 5-10% of current prices.

[314]

This is hilarious.

[Siira]

It might not work in practice, but it is certainly a big factor behind using housing as an investment mechanism.

[ashwagary]

Feel free to share if you have any criticism of this view.