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2024-02-04 17:18:18

todmann67 on Nostr: There are roughly 11 types of risk in commercial #realestate and putting bitcoin on ...

There are roughly 11 types of risk in commercial #realestate and putting bitcoin on the balance sheet helps mitigate 4 of them.
Macro risk: holding an asset that consistently increases its purchasing power can help weather economic downturns.
Interest rate risk: when rates go up, cash flow valuations go down; BTC has shown that it can rebound quickly from interest rate shock and over time it will further decouple from rates as it becomes seen as risk-off.
Inflation risk: consistent purchasing power growth abates the old concept of constantly escalating rent to keep up with inflation, meaning more price stability and better occupancy rates.
Liquidity risk: buildings are illiquid, so having BTC on the balance sheet allows the operator to quickly deploy capital without having to market a property for 6-12+ months.

Thanks to and for getting this conversation started.
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