Bitcoin Shows How House Prices Lose Value in Dollars

The price of an average U.S. home looks dramatically different when viewed through two lenses.

1️⃣ In Dollars

• Rising Value: Since 2020, the average house has increased by more than $100 000.
• Wealth Boost Effect: This surge makes homeowners feel richer, prompting them to purchase more goods and take on additional debt—even if wages remain flat.

2️⃣ In Bitcoin

• Sharp Decline: A typical house cost over 50 BTC in 2020 but now costs just about 5 BTC—a drop of nearly 90%.
• Why It Matters: The change isn’t in the property itself but in how we measure its value.

3️⃣ The Inflation Factor

• Printing Money: Excessive money supply has pushed inflation above the Federal Reserve’s target.
• Dollar Erosion: Each dollar now buys less than before.
• Bitcoin’s Advantage: With a capped supply of 21 million coins, Bitcoin serves as a stable yardstick to gauge dollar weakness.

4️⃣ Alternatives and Preferences

• Other Assets: Gold or stocks also illustrate the dollar’s loss of power, but Bitcoin remains a popular hedge against inflation.
• Market Sentiment: Despite recent price declines, many view Bitcoin as a long‑term safeguard against currency erosion.

5️⃣ Market Dynamics

• ETF Interest: Bitcoin’s future value may hinge on increased purchases of exchange‑traded funds (ETFs) that track the asset—especially BlackRock’s fund, which recently absorbed over $200 million after a period of heavy withdrawals.
• Geopolitical Tensions: A new U.S. military strike in the Middle East has spurred oil price volatility and shifted bond yields.
• Yield Impact: The 10‑year inflation‑linked Treasury yield has risen to its highest level in over a year, making non‑interest‑bearing assets like gold or Bitcoin less attractive.