Laeserin
· 1w
And the thing is that money can be printed, but assets cannot be conjured out of thin air. There is no way to even purchase them, unless they are put on the market, at prices normal people can afford ...
Bitcoin fixes this, it really does. It obsoletes the banks. When banks lose power (I phrase it that way because it will be gradual) they lose the ability to dictate prices, which they absolutely currently do. Housing prices are set by banks. They lend money to the prospective "owners" and to the construction company that builds them. They survey the market to set "comps" to determine the price of houses, which they then use to decide on whether to loan - that process determines the available credit in any region for both building and buying homes. So what happens when there's no banks? Assets sell for their real value again. This will be a structural change - not only will houses sell for their real value, but so will everything that goes into the production of new houses.