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Bitcoin pricing of U.S. homes highlights dollar inflation and fiat erosion

CoinDesk notes a typical U.S. home has risen by more than $100,000 since 2020, but when priced in bitcoin the same property requires about 5 BTC versus more than 50 BTC earlier, a 90.0% shift.

Reported · Written up by our desk · Market Structure

CoinDesk examines how the story of U.S. housing prices changes depending on the unit of account, arguing that comparing home values in dollars versus bitcoin can reflect different measures of economic change.

According to CoinDesk, Fidelity Digital Assets says a typical U.S. house has gained more than $100,000 since 2020, a move framed as a “wealth effect” that can influence spending and borrowing even if income is unchanged. But when the same house is priced in bitcoin, the narrative shifts: the article says what cost more than 50 BTC in 2020 now costs about 5 BTC, a 90.0% decline.

CoinDesk attributes the difference to fiat currency erosion, citing a longer stretch of inflation that has remained above the Federal Reserve’s 2% target for more than five years. It also points to bitcoin’s fixed supply of 21 million coins, with a transparent issuance schedule, as a “neutral yardstick” that can expose perceived dollar debasement.

For near term bitcoin demand, CoinDesk highlights that recovery prospects depend on demand for bitcoin ETFs, focusing on BlackRock’s IBIT. The newsletter says IBIT has pulled in over $200 million this week, ending a record streak of outflows worth billions of dollars.

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