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Is Larry Fink’s $350 Trillion Real Estate Bubble COLLAPSING Into Bitcoin!? | Simply SatoSHE · Simply Bitcoin

• 0:00
  What if I told you real estate is down 90%?
• 0:04
  And the weird part is nobody's talking about it.
• 0:07
  This is one of the most misunderstood concepts in the
• 0:10
  world today, and there's $350 trillion of money that's been
• 0:15
  stuffed into real estate, assuming that home prices only
• 0:19
  go up. But what's interesting is that
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  Larry Fink, the man who engineered this $350 trillion
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  real estate bubble in the 1980s with the Creation of the CMO, he
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  might be quietly exiting the housing market and buying
• 0:36
  something else. Today, we're breaking down how
• 0:39
  the American dream has failed for the entire world, why
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  tokenization is real estate's last gasp, Blackrock's strange
• 0:48
  involvement in this market, and why the Fed's next move could
• 0:53
  send even more capital into Bitcoin.
• 0:56
  Welcome back to Simply Bitcoin's Satoshi, the show where we cut
• 1:00
  the noise and bring the signal for Bitcoiners.
• 1:03
  I'm Sophie. Grab your coffee, stack your
• 1:06
  Sats and let's get into it. The problem that we've got from
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  a societal perspective is that with traditional finance, Wall
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  Street has been able to, and this is back to say Larry Fink
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  and what he did, you know, in the 80s with monetizing
• 1:24
  mortgage-backed securities, both commercial residential.
• 1:27
  If you play that out full forward 2008, that leads to the
• 1:31
  global financial crisis where you're literally giving, you
• 1:34
  know, strawberry pickers in Southern California $1,000,000
• 1:36
  mortgage and it's like what could possibly go wrong here?
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  Now that led to an overinflated property price and it led to
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  basically people being bankrupted handing back the keys
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  and the no recourse lending in the US.
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  That led to a global financial crisis because everyone had
• 1:49
  plowed their money into that because they wanted to return.
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  That led to the financial, the financialization of basically
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  social assets that Main Street use.
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  That's not a good thing to be doing from a societal
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  perspective because there are real life consequences for
• 2:06
  financializing the assets that we use and live and live in.
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  Before we talk about the roots of Larry Fink and the CMO
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  markets in the 1980s, let's explain the strange concept.
• 2:18
  How exactly is real estate down 90%?
• 2:22
  It seems like it doesn't make sense, but let's start with the
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  simple math behind the headline. Everybody says housing only goes
• 2:29
  up, but that depends entirely on what you measure it in.
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  In U.S. dollars, home prices are at record highs, but when you
• 2:38
  price them in Bitcoin, the world's hardest asset, the story
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  completely flips. Back in mid 2020, the median new
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  home price was about $317,000. Bitcoin traded near $9100, which
• 2:55
  means a home cost around 34.6 Bitcoin.
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  Fast forward to today, and the median price of a new house is
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  $410,800 Bitcoin, $121,000 at the time of this recording.
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  That's only 3.4 Bitcoin per home, a 90% decline in Bitcoin
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  terms. Why would you buy a house when
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  you can buy Bitcoin instead? You buy a house you used to pay
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  property tax. You buy a Bitcoin.
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  Done. Plus you sell it.
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  You're going to pay property taxes every month.
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  The government can't take it from you because you lost it in
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  a boating accident. Plus you get higher rate of
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  return. Plus you're geographically free.
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  Plus you can liquidate it instantly without waiting years
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  to sell it on the market. Real estate didn't crash in
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  dollars, but it seems that the dollar has been crashing against
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  Bitcoin. See.
• 3:51
  Change the yardstick, change the story.
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  And no, this is not investment advice.
• 3:57
  Bitcoin is volatile. Timeframes matter, and housing
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  does have its place. I mean, people do need a place
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  to live. But if the last five years have
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  shown any signal it's that hard money could quietly become a new
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  safe haven. This is the reality.
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  Catching up to real estate. Here's where it gets spicy.
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  Even the old guard looks like they may be coming to the orange
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  side. Almost two years ago, Larry Fain
• 4:25
  called Bitcoin a flight to quality.
• 4:27
  This rally is way beyond the rumor.
• 4:30
  I think the the rally today is about a flight to quality with
• 4:34
  all the, you know, all the issues around the Israeli war,
• 4:38
  now global terrorism. And I think there's more people
• 4:43
  running into a fight. The quality, whether that is in
• 4:46
  treasuries, gold or crypto, depending on how you think about
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  it. And I believe crypto will play
• 4:51
  that type of role as a flight to quality.
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  Since then, Blackrock's IBITETF has grown into their most
• 4:59
  profitable fund ever, approaching $100 billion AUM.
• 5:04
  What is AUM? I don't need to know that I
• 5:07
  stock sats. That's not a side bet.
• 5:09
  That's real proof of work. And like clockwork, the copycats
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  followed. Van Eck just published a report
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  projecting Bitcoin could reach half of gold's market cap,
• 5:21
  roughly $7 trillion in value, and even tethered.
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  The world's largest stable coin issuer just added 8888 Bitcoin
• 5:31
  to its reserves Angel number worth nearly $1 billion and
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  pledged to convert 15% of its future profits into Bitcoin.
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  So let's recap the biggest ETF issuer on Earth, BlackRock, a
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  top gold manager Van Eck, and the largest stable coin network
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  Tether are all now structurally long Bitcoin.
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  When capital allocators this big start treating Bitcoin as the
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  new base layer of value, you're not watching speculation.
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  You're possibly watching monetary migration.
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  Real estate has traditionally been the ultimate safe haven,
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  store value, maybe except for that time in 2008, but we're not
• 6:14
  going to talk about that. But that was when money itself
• 6:17
  was a little more stable. Listen to a billionaire Ricardo
• 6:21
  Salinas has to say about real estate when compared to Bitcoin.
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  For for most people, saving is in the form of a house.
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  And it's not a bad saving, OK? It's not bad because the asset
• 6:33
  doesn't go down. It's just that that asset
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  compared to Bitcoin doesn't stand a chance, right?
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  Because you can always make more houses.
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  Bitcoin, you can't make any more.
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  That's right. And you can't take the house
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  with you if something happens. And, you know, you get the
• 6:50
  property tax and you get the maintenance and that.
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  And I, you know, Sailor has done an excellent job of pointing out
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  the, the weaknesses of real estate investment versus
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  Bitcoin. But of course, more also people
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  need to have a house where to live in, you know, that's
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  different. You know, it's not a bad, it's a
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  good investment to use a house for living.
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  Now, if you want it as an investment, it's different.
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  Wealth recognizes wealth, like Mr. Salinas mentioned, Michael
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  Saylor put it bluntly in a recent interview.
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  I know wealthy people. They own 16 estates on the
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  Eastern Shore and they live in two of them.
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  Like why do they buy them? They land banking.
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  What does that mean? Well, the guy makes a lot of
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  money every year and he and he doesn't want to put it in a
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  savings account. So he goes and he just buys a
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  cool piece of property and he buys another one.
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  Well, OK, it sounds good, but here's the problem.
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  The guy buys up the beautiful pieces of property and you so
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  you can't afford it. And if the guy, if the rich guy
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  wasn't buying up all the beautiful houses, they would
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  cost half as much and you could live in a beautiful house.
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  So here's what happens. Some rich dude has 27 houses
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  that are empty. You don't have a beautiful
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  house. You have a family, your kids,
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  your dog could use the beautiful house.
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  The rich dude doesn't even want the house.
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  He just wants a long term capital preservation strategy,
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  right? And so that's a prefer, a
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  perverse incentive and a distorted economy that's broken,
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  that's broken money. That's because the rich dude is
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  using an estate on the Eastern Shore of Maryland as a Piggy
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  Bank. Huh.
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  But the estate doesn't get renovated.
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  The house is falling down. There's a beautiful pool on the
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  water, and you could have a great family picnic there every
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  Sunday. But it's not going to happen
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  because the rich dude has 16 other houses.
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  He just bought that house because he thought it was a good
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  investment. OK, that's wrong.
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  And for younger generations, it's not looking pretty.
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  The broken system Sailor describes makes it so Gen.
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  Z and millennials are effectively locked out of home
• 9:06
  ownership. Why?
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  Because the government can't stop printing money, and there's
• 9:12
  a false illusion that the value of homes are rising while wages
• 9:17
  stay stagnant. And the unbelievable part is
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  that the Fed is expected to cut rates again this month, which
• 9:25
  means more cheap credit, more inflation, and fewer real
• 9:30
  returns. Even if we put all that aside,
• 9:33
  can this generation really afford to take the risk?
• 9:36
  As one meme puts it, you think you own your house, but the Fed
• 9:40
  still owns your wallet. All right, before we dive into
• 9:43
  how this shift could rewrite real estate entirely, here's how
• 9:47
  to make your Bitcoin actually work for you safely.
• 9:50
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• 9:54
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• 9:59
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• 10:04
  a perfect record of protecting client assets.
• 10:08
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• 10:11
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• 10:15
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• 10:23
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• 10:29
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• 10:32
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• 10:36
  off your first loan. Learn more at learn dot leaden
• 10:40
  dot IO slash. Simply now, let's get back to
• 10:43
  the show. Even after all that, Bitcoin
• 10:47
  still might be undervalued. Bloomberg's Lisa Bromwich's
• 10:51
  recently noted gold's parabolic move towards $4000.
• 10:55
  And history suggests Bitcoin often follows gold's lead when
• 10:59
  the system looks shaky. So here's the trade off, purely
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  as an observation. You can buy a home, maintain it,
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  pay property tax, and maybe earn 6 to 8% yearly.
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  Or you can hold Bitcoin, take it into self custody, and let the
• 11:14
  protocol do the work. As Joe Consorti joked, the
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  opportunity cost is starting to look obvious.
• 11:21
  The question isn't is Bitcoin risky, it's how risky is it
• 11:26
  staying in the old system? When you think of something like
• 11:30
  real estate, you guys want to know what the risk is.
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  Turn on your local news. That's risk.
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  When people say I've I've levered myself to buy a bunch of
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  Airbnb properties and that's how I'm going to save and build my
• 11:45
  wealth, to build for retirement and finance my family, there's
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  significant risk in that. Significant risk in property
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  taxes in upkeep and natural disaster in future demand to
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  rent the property in interest rates.
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  The counterparty risk is significant and people
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  underestimate that. They tremendously overestimate
• 12:07
  and overvalue the risk in Bitcoin and misunderstand it
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  entirely. It's not risk, it's volatility.
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  And now we reach the final act Tokenization Real Estate's Hail
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  Mary rebrand and. I think real estate's a big
• 12:21
  opportunity. I think it's it's smart that
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  they're aggressively pursuing that cause everyone wants access
• 12:29
  to high quality real estate, particularly the mass market.
• 12:32
  But isn't it true real estate is actually more?
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  Complex. I mean that tried this.
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  Before, it hasn't really. Worked.
• 12:38
  It has some similarities to a private company.
• 12:43
  Actually, if you think about what a real estate investment
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  looks like, you you create a corporation.
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  Using that corporation you acquire some assets.
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  It has some costs which you want to minimize as much as possible,
• 12:56
  maintenance. It has revenues like rent,
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  receivables or depending on how you use it.
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  So if you can tokenize a private company, that same technology
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  can actually be used to to tokenize real estate, be it
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  residential, commercial. And yeah, I think we figured out
• 13:16
  how to do it. It's just a question of
• 13:18
  regulation and what the right products are for for different
• 13:21
  groups of customers. I don't know why they do this.
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  I couldn't tell you to save my life.
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  Developers call it the future of property, but in practice it's
• 13:30
  just Wall Street trying to wrap a sinking ship in blockchain
• 13:33
  packaging. You're not decentralizing
• 13:36
  ownership, you're just minting IO US under a new logo.
• 13:40
  It's still Fiat. It's still custodial, still
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  dependent on the same courts and counterparties that 'cause this
• 13:47
  mess, you don't need to tokenize your house, just price it in
• 13:53
  Bitcoin. They're screaming for rates to
• 13:55
  be lower and maybe even artificially kept lower so that
• 13:59
  everybody can refi their house. Like what do you think the
• 14:02
  ramifications of that are going to be for the prices of homes
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  long term? They're going to RIP.
• 14:10
  They're going to RIP even higher than what you're already like if
• 14:13
  we, you know, we jump five years into the future.
• 14:16
  So all of these things are in a manifestation or an example of
• 14:22
  the currency melting down, in my humble opinion.
• 14:26
  And so, you know, when people are like, Oh my God, how in the
• 14:30
  world can anybody afford a house?
• 14:31
  Well, just go like, price the house in Bitcoin for like the
• 14:35
  last 10 years every year. And what you're going to find is
• 14:37
  the price just keeps going lower and lower and lower.
• 14:40
  And if somebody's like, what did he just say?
• 14:43
  Yeah, rewind the tape and listen to what I just said.
• 14:45
  The prices keep going lower and lower in Bitcoin terms and it's
• 14:48
  just going to, in my opinion, it's just going to keep going
• 14:50
  that way. Because when you price property
• 14:53
  in hard money, inflation distortion disappears.
• 14:57
  Suddenly the market can't lie to you.
• 15:00
  It can't pretend that housing is booming.
• 15:03
  When it's just the currency collapsing.
• 15:05
  You see real value instead of fake wealth.
• 15:08
  And that's the peaceful revolution.
• 15:10
  Truth and price truth in value. Before we wrap, let's talk about
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• 15:42
  OK, so here's the bottom line. Real estate is already down 90%
• 15:47
  when you price it in. Bitcoin institutions are
• 15:50
  migrating to hard money. Fiat markets can't keep up.
• 15:54
  Bitcoin still early tokenization.
• 15:59
  That's just coping in code. Stop trying to make fetch
• 16:03
  happen. It's not going to happen.
• 16:05
  If you want real ownership, hold Bitcoin in self custody and
• 16:09
  start pricing your life in it. That's how you escape the
• 16:12
  illusion of getting richer while losing value.
• 16:16
  Would you rather own a rental property or a piece of the
• 16:20
  hardest money ever created? I know what I'm picking.
• 16:23
  Let me know in the comments. Don't forget to like, subscribe
• 16:26
  and share this show with a friend who still thinks that
• 16:29
  real estate always goes up. It's always a very interesting
• 16:32
  conversation with them. I'm Sophie.
• 16:34
  This is simply bitcoins Satoshi. And until next time, stack
• 16:39
  sleigh and stay bullish, baby.