Crypto Beans #18 Bitcoin is digital property, an alternate to Real estate and more

Hey there everyone! 👋 This is Shivam. I bring to you the 16th weekly edition of Crypto Beans. This is an effort through which I try to share my thoughts on the crypto space and help you stay updated. Your 0 to 1 guide in crypto.

Read time - 4 mins

In this edition, the article I explore is titled "Bitcoin is digital property, an alternate to Real estate and more" Hope you enjoy it.

Spill the beans (Explain to me like a 5 year old) 

Private property rights enabled the creation of cities. Bitcoin - a DIGITAL property, enables wealth creation in the digital space

1} Mark Twain said - “Buy land, they’re not making it anymore.” 

Bitcoin has a unique value proposition. As a protocol for exchanging value it allows you to directly own part of it. But you would ask, why is it important? Well let me explain

Imagine if you could own part of the internet, would you say no?

In fact, owning bitcoin — is owning shares in a new breakthrough protocol that will transform the internet from a space where not only information, but also value, can be freely exchanged.

This was never possible with the internet of information. Ownership and value capture is built directly into the network  So wouldn't calling bitcoin land be a more accurate comparison?

2} Why is Bitcoin RE?

Well, Bitcoin is similar to real estate given its complexity and ways to working. In theory, owning real estate is desirable because:

• It generates income (rent)

• Can be used as a means of production (manufacturing)

But for the most part, Real estate also serves a different purpose. Given the high levels of monetary inflation in recent decades, simply keeping money in a savings account is not enough to preserve the value of money and keep up with inflation.

As a result, many individuals, pension funds and institutions, typically invest a significant portion of their disposable cash in real estate, which has become one of the preferred stores of value.

Most people don't want real estate so they can live in it or use it for production. They want real estate so they can store value. Now here is the interesting part with Bitcoin.. The supply of bitcoin is finite, the properties associated with bitcoin make it an ideal store of value. It is easily portable, divisible, durable, fungible, censorship-resistant and noncustodial.

3} Infact - Real estate cannot compete with bitcoin as a store of value.

Bitcoin is rarer, more liquid, easier to move and harder to confiscate. It can be sent anywhere in the world at almost no cost at the speed of light. Real estate, on the other hand, is easy to confiscate and very difficult to liquidate in times of crisis.

You must be thinking this kid has gone rogue but let's take a recent example: Imagine Ukraine, where after the Russian invasion in February 2022, many Ukrainians turned to Bitcoin as a means of protecting their wealth. Bitcoin allowed them to bring their money with them, accept transfers and donations, and meet their daily needs. Real estate, on the other hand, would have been difficult to move and could have been confiscated by the invading forces.

Another comparison is Real estate is one of the most common forms of collateral used in the traditional banking system. Banks lend to people and institutions that own real estate. Similarly, Bitcoin ownership has become synonymous with “creditworthiness” in the bitcoin space. It is the preferred collateral accepted by bitcoin financial service providers. 

Bitcoin is part of a fundamental step towards digitizing the world around us and RE is the best metaphor to describe what it offer right now.

State of Crypto affairs - A quick look at the market 

The global cryptocurrency market cap today: $1.22 Trillion

Weekly change: 8.46% | Yearly change: -37.66% 

Bitcoin (BTC) is the largest cryptocurrency with a market cap of $587 Billion.

Weekly change: 8.75% | YTD change: 66.57%

 Another important metric is Bitcoin dominance which can be used as a rough indicator of the relative strength of Bitcoin versus other cryptocurrencies. A high Bitcoin dominance means that Bitcoin has a large market share and is potentially more influential in the overall cryptocurrency market and vice-versa.

Bitcoin dominance: Current Year: 43.97% | Last year (April 2022): 40.62%

Greed and fear index 

The market sentiment has been turning, now the market seems to be getting more cautious with the news around layoffs and looming recession. 

Note: The data used is based on metrics like Volatility, Surveys, Bitcoin Dominance, Social and Google Trends. Source: Coinstats

Is ETH ultrasound money? 

Let's have a look at Ethereum supply changes post its merge to a PoS blockchain from PoW, as there is a shift in the narrative for Ethereum to become a store of value due to the expected reduction in ETH emissions.

Supply change since merge POS  -109,247 ETH

The graph highlights POS vs POW issuance since the merge. Impressive numbers, look super bullish for ETH long term given the supply of ETH is not growing as before

What's brewing today? Bringing fresh beans to you: 

Crypto Exchange Coinbase Receives License to Operate in Bermuda: The news comes two days after Coinbase CEO Brian Armstrong indicated the U.S.-based exchange would consider out of the U.S. if clear crypto regulation isn't enacted.

Why the EU Has MiCA and the U.S. Has Securities Law Confusion: The European Parliament went ahead and did it: Today, after years of deliberations and at least two official delays, the landmark Markets in Crypto-Assets (MiCA) regulatory framework was voted in.

Judge Rules Bored Ape Yacht Club Ripoff NFTs Violated Yuga Copyright: Use of BAYC trademarks by Ripps’ RR/BAYC was intended to confuse consumers, a U.S. judge in California has ruled

Whats meme-ing? Better make sure this is fun

And now the funny part,

What did you think of today's edition?  

Reach out to me on Twitter or Linkedin for any feedback :)

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.