The Macro Markets show hosted by crypto analyst Marcel Pechman explains complex financial concepts in an accessible manner and explores the impact of traditional financial market events on daily cryptocurrency activity. In a recent episode, Pechman discusses the housing crisis, focusing on the increased risk commercial properties face due to business declines during economic downturns. Inefficient and unreliable systems used during the France-China liquid natural gas trade that bypasses the US dollar as a global settlement layer are also explored. Additionally, the show explains how Bitcoin and cryptocurrencies resemble broader commodities trading, with most of the volume happening in USD.
This article originally appeared on cointelegraph.com
The world is facing multiple challenges and the housing crisis is undoubtedly one of the most pressing ones. In many parts of the world, skyrocketing prices and decreasing availability of affordable housing is becoming a major issue. This crisis not only affects the individuals and families who are struggling to find or maintain stable housing, but it also poses significant economic and social challenges for the societies at large.
This is where the cryptocurrency community comes in. While it might not seem obvious at first, the housing crisis is relevant to crypto investors and enthusiasts. The reason is simple: the two seemingly unrelated phenomena are connected in several important ways.
Firstly, the housing crisis is a clear illustration of the problems with the traditional financial system. The housing market, like many other sectors of the economy, has become subject to the rules of the global financial system. Banks and other financial institutions, driven by profit motives and speculative interests, have had a significant impact on the housing market. They have facilitated easy access to credit and enabled the creation of complex financial instruments that have fueled the housing boom and bust cycles. Thus, the housing crisis is an example of the systemic problems with the traditional financial system, which cryptocurrencies seek to address.
Secondly, the housing crisis highlights the potential of blockchain technology and cryptocurrencies to facilitate alternative models of finance and housing. Cryptocurrencies, blockchain technology, and decentralized finance (DeFi) can offer new solutions to the problems stemming from the centralized, profit-driven financial system. For instance, crypto-based crowdfunding platforms can help individuals and small organizations raise funds for building affordable housing projects. Blockchain solutions can enable fractional ownership of houses, making it possible for people to co-own a property and benefit from stable, affordable housing.
Lastly, the housing crisis presents an opportunity for the cryptocurrency community to engage with a vital social issue and contribute to solutions. Crypto investors can use their resources and networks to support existing housing initiatives, fund projects, and raise awareness about the problem. By collaborating with housing activists, nonprofits, and community organizations, crypto enthusiasts can help to create a more equitable and just housing system.
In conclusion, the housing crisis is not just a problem for policymakers and housing experts. It is relevant to the broader community including crypto investors and enthusiasts. The crisis offers an opportunity to reexamine the existing financial system, explore alternative models of financing and housing, and contribute to building a fairer and more sustainable housing system. It is time for the cryptocurrency community to recognize the significance of the housing crisis and play an active role in addressing it.