Demonetized means the financial premium of a house will go away. Think of investors who buy houses simply because they think they can get a better return than investing their money elsewhere. It was great during the zero rate interest environment, and especially good for countries that had massive immigration levels, or in the case of Canada, zero attempts to hide money laundering, etc. When you look at charts that show house prices in term of incomes, you can see a massive shift in the past 15 years. When house prices are detached from incomes, there are artificial reasons for why all this money went into housing to bid those prices up. If investors or money launderers had a better way invest/launder money, houses wouldn't have seen the explosive growth in values. So to demonetize means taking this factor out of houses and restoring them to the utility value (ie. somewhere to live). The same can be said for gold. If gold is ever one day thought of as a not great way to store wealth, what is the value based on industrial uses and jewellery? Gold will also be demonetized.
My humble opinion. Avoid Bitcoin, Gold and Silver in the order. Bitcoin should hit 60K,, Gold 2750 and Silver 29. Those cases if happen, will make many many people bankrupt.
Most people will not sell their real estate, business, portfolio of value stocks, other "productive" assets to buy bitcoin What you're describing is an impossible made up fantasy sunk cost unit bias price anchor [They will always remember or be told that bitcoin was $100 in 2013, $1,000 in 2017, $3,500 in 2020, and $15,000 in 2022 - price anchors] You really think someone with equity of $1.5M that was built over 20 years of blood sweat and tears and family memories, and all their improvements, will contact a RE agent to list their home, move out in a couple of months, to a strange place, whether apartment, a house for rent, new strangers neighbors... so they can purchase 1 bitcoin because it's the hottest thing, but very volatile, they can lose $200k (15-20% pullback) value within a month? Or sell their portfolio of value stocks, like brka, xom, ko, wmt, cost, the ones they meticulously bought, month after month, year after year, $1M worth to buy 0.5 btc because they suddenly became convinced that degen investing into the hottest asset is the correct way to invest? From value investing to bitcoin, doubt any one has that mental fortitude Or how about that business they worked so hard for 10 years ruthlessly giving it everything they got, to succeed they will now sell it to buy 2 bitcoin at the current bitcoin price, hardly anyone with a net worth of less than $5M will buy the equivalent of >1+ bitcoin at $200k/btc, hardly anyone with a net worth of less than $10M will buy the equivalent of >1+ bitcoin The buyers at $1M/btc and higher will be price-agnostic, uhnwi, corporations, sovereign wealth funds, pension funds, nation states, family offices,, yes, these buyers are here now, accumulating, and they will increase in number as well as their portfolio allocation, already Mr L. Fink mentioned 5% allocation at Davos when a few months before, Blackrock mentioned 1-2% allocation Anyway, the clueless dreamers of instant wealth liquidating assets at a discount to buy bitcoin >$1M/btc will be as rare as a flawless 5 carat natural emerald
I think their idiot kid might when they inherit. I am not impressed by institutions buying something. Remember when Mary Barra put 2 billion into Nikola without seeming to do even the most basic due diligence? They took capital that was supposed to produce real products and invested in something that produces nothing. Sound familiar? I don't doubt that some corporations will turn themselves into investment vehicles for Bitcoin and further inflate the bubble. To do that they're going to need capital. To get that capital they're going to have to sell something.
I'm not familiar with the Barra investment, but the WeWork disaster IPO valuation, has similar vibe Anyway, the investment world and Traditional Finance does not work like that, they will not sell assets to buy bitcoin, they simply borrow against their assets to buy more bitcoin When they do this, it creates new money in the financial system It's all part of the "portfolio allocation" algos and stuff, which is why when Blackrock recommended 1-2% portfolio allocation, that was a big deal, and when Blackrock CEO increased it to 5% allocation at Davos speech, it was an even bigger deal The machineries are all running new models and they will expand the monetary system through more borrowing, and when bitcoin price goes up, frees up more leverage for them to buy tradfi assets, and rinse and repeat lever to buy more bitcoin, but the key is to be within the parameters of 1-5% portfolio allocation Real estate will get demonetized as the portfolio allocation to single family homes will be reduced, the prices do not necessarily have to go down, they just stay flat or only go up slowly, good for everyone, new buyers will be able to finally buy a home,