Bitcoin as Digital Real Estate: An Excerpt from Leon Wankum’s Digital Real Estate

Bitcoin Magazine Bitcoin as Digital Real Estate: An Excerpt from Leon Wankum’s Digital Real Estate Bitcoin can be understood through an analogy with real estate.16 Michael Saylor, Executive Chairman and Co-Founder of Strategy (formerly MicroStrategy), has compared investing in bitcoin to buying real estate in downtown Manhattan during the early stages of its development.

As population, commerce, and cultural activity concentrated in the city, demand for limited land surged, dramatically increasing property values. Many of the world’s wealthiest families built their fortunes by owning scarce real estate.

When something limited is in high demand, its value rises.

As the saying commonly attributed to Mark Twain goes, “Buy land—they’re not making it anymore.” Scarcity plays a central role in determining value, which is why real estate in densely populated areas is more expensive than in sparsely populated ones.