U.Today – Peter Brandt has noted that in terms of gold, US home prices are not that far from reaching historic lows, but he went a step further and proposed that home prices would be significantly lower if expressed in gold.
This claim highlights some important issues and criticisms, while also contributing to a broader debate about the potential use of Bitcoin as a benchmark for measuring value. Underlying Brandt’s argument is the notion that Bitcoin may be more accurate or representative of real value than more conventional measures of value, such as gold or fiat currencies.
Homes are comparatively more affordable when gold is taken into account, as the metal has historically been considered a reliable store of value. However, Bitcoin is starting to be recognized as a new form of digital gold that has the ability to replace traditional monetary standards, even despite its volatility. Brandt argues that given Bitcoin’s remarkable appreciation over the past 10 years, homes priced in BTC would now appear significantly less expensive than those priced in dollars or even gold.
Bitcoin’s volatility is a key issue that should not be overlooked. Bitcoin has experienced significant ups and downs, making it a potentially unreliable metric for pricing something as important as real estate. Furthermore, the idea of using Bitcoin as a global standard for valuing real estate is still purely theoretical due to its relatively low acceptance in regular transactions and its unstable regulatory environment.
This article was originally published on U.Today
