replacing real estate as an asset class can enable affordable housing
This is a great insight. Taking Germany as an example, policies to de-financialize housing lead to low and stable prices. China has been the opposite with the US in the middle.
Ultimately investment gains have to come from somewhere; real estate "investment" has mostly ended up stealing unsustainable amounts from the next generation. Even if you could replicate that with crypto it would probably only work for one generation (if that).
I guess government regulations created the housing market so you could imagine different government regulations (Sinagpore-style?) propping up some crypto instead, but that's not realistic today. Although... a system that almost every working person invests into then cashes out decades later sounds like US Social Security (except bigger and more harmful).
the biggest challenges are implementing illiquidity and regional market pricing
My thinking was that real estate's lack of volatility comes from its illiquid nature. You can't buy and sell property on whim so there's less chance of temporary events (e.g. Trump tweets, earnings call results) having an outsized impact on prices.
Similarly, regional market pricing would prevent pan-region price crashes arising from someone dumping a large number of coins in this illiquid market. However, the more I think about this, I think it's a non-issue if you have large enough demand for this coin and a lack of liquidity.
Comments
replacing real estate as an asset class can enable affordable housing
This is a great insight. Taking Germany as an example, policies to de-financialize housing lead to low and stable prices. China has been the opposite with the US in the middle.
Ultimately investment gains have to come from somewhere; real estate "investment" has mostly ended up stealing unsustainable amounts from the next generation. Even if you could replicate that with crypto it would probably only work for one generation (if that).
I guess government regulations created the housing market so you could imagine different government regulations (Sinagpore-style?) propping up some crypto instead, but that's not realistic today. Although... a system that almost every working person invests into then cashes out decades later sounds like US Social Security (except bigger and more harmful).
the biggest challenges are implementing illiquidity and regional market pricing
Why are these good?
My thinking was that real estate's lack of volatility comes from its illiquid nature. You can't buy and sell property on whim so there's less chance of temporary events (e.g. Trump tweets, earnings call results) having an outsized impact on prices.
Similarly, regional market pricing would prevent pan-region price crashes arising from someone dumping a large number of coins in this illiquid market. However, the more I think about this, I think it's a non-issue if you have large enough demand for this coin and a lack of liquidity.