Is the real estate market quietly collapsing? Measured in Bitcoin, your house's value may be hitting a historical low.

On the surface, real estate prices are still rising when measured in USD and other fiat currencies. However, if you change your perspective and measure it in Bitcoin (BTC), you might discover an overlooked reality—your house is depreciating at an astonishing rate. This “silent collapse” is happening globally, and most people are not even aware of it.

Real Case: The US dollar pumped, but BTC dropped 78%

In April 2023, a Bitcoin user named Breadman purchased a property for $496,000, which was equivalent to 22.5 BTC at the time.

August 2025: The property’s value in USD rises to $570,000, with an increase of about 15%.

Priced in BTC: Only worth 4.85 BTC, down by as much as 78%

This means that although it seems profitable in the fiat world, the purchasing power of this investment has been significantly eroded in the face of the world’s most scarce digital assets.

Global Housing Market: Nominal Pump, Actual Weakness

Southern Europe: Spain’s housing price year-on-year growth rate is 7-8%, while Portugal even reaches double digits.

North America, the UK, and most parts of Europe: the pump has obviously slowed down.

UBS 2025 forecast: Residential capital values are “relatively stable,” with only moderate increases.

In a high inflation environment, nominal increases are often offset by a decline in purchasing power. For example, the inflation rate in the United States is expected to exceed 4% in 2025, while emerging markets like Argentina may reach over 200%, directly negating the significance of rising housing prices.

Bitcoin: The Contrasting Impact of Deflationary Assets

(Source: Jesse Myers)

Since April 2023, the price of Bitcoin has skyrocketed from $22,000 to over $118,000, outperforming all major asset classes globally.

Fiat perspective: Housing prices pump → Asset appreciation

BTC Perspective: Housing prices plummet → Asset depreciation

Macro investor James Lavish pointed out that approximately 998 trillion dollars of capital is trapped in real estate and other traditional assets, while the scarcity and deflationary model of Bitcoin is gradually eroding the value storage function of these assets.

“Bitcoin Pizza” Effect: Opportunity Cost of Missed Chances

In 2010, Laszlo Hanyecz bought two pizzas for 10,000 BTC, which was worth only 41 dollars at the time, and is now worth over 1.1 billion dollars.

This kind of “seemingly reasonable at the time, surprisingly huge losses later on” situation is being replayed in the real estate market - exchanging houses for Bitcoin may mean giving up the potential for several times or even dozens of times in future appreciation.

Investment Insight: Why BTC Perspective Matters

Fiat pricing: easily confused by inflation and nominal pumps

BTC Pricing: Revealing the True Purchasing Power of Assets in the World’s Rarest Currency

Asset allocation suggestion: In an era of high inflation and currency depreciation, relying solely on real estate as a preservation tool increases risks, and it is advisable to consider allocating a portion of deflationary assets (such as BTC).

Conclusion

The “quiet collapse” of real estate is not due to a plummeting price, but rather the rapid loss of purchasing power in the face of Bitcoin as a deflationary asset. While global media continues to report that housing prices are “hitting new highs,” the truth from the perspective of Bitcoin is that — your house may be hitting a historic low.