In April 2023, a Bitcoiner known as Breadman bought a property for $496,000, equivalent to 22.5 BTC at the time. Fast forward to August 2025, and the property is now appraised at $570,000, marking a 15% increase in dollar value. However, here’s the twist: in Bitcoin terms, the home is now worth just 4.85 BTC, showcasing a shocking 78% loss, underscoring real estate’s silent collapse as a valuable asset.
Breadman’s challenging experience highlights a hidden crisis rippling through global real estate markets, often masked by increasing fiat prices but glaring when viewed through a Bitcoin perspective.
The decline of real estate is clearer in the US
While Mediterranean nations like Spain have reported annual price growth of 7–8%, and even higher increases in valuations in Portugal, the broader global scenario appears less certain.
In North America, the UK, and much of Europe, property appreciation has drastically slowed. A UBS global forecast for 2025 indicates that, following declines in 2022 and a subdued recovery, capital values are anticipated to remain “fairly flat” this year, with the residential sector experiencing only “slight gains”.
The diminishing value of fiat: real gains aren’t what they appear
A purported 15% increase over two years sounds attractive. However, inflation relentlessly diminishes those fiat profits. Updated forecasts suggest that U.S. inflation for 2025 will hover above 4%; when you factor in local fluctuations due to tariffs and changing global policies, the actual return on property is often significantly less than the superficial figure.
The situation is even graver in numerous emerging markets, where soaring inflation rates (sometimes reaching triple digits) obliterate nominal gains and erode actual wealth. For instance, Argentina’s annual inflation surpassed 200% in 2023, leading property owners to often see their increases in local currency values overshadowed by a drastic reduction in purchasing power.
Bitcoin as the ultimate benchmark
Now, take a step back. Since April 2023, Bitcoin has surged from around ~$22,000 to over $118,000, surpassing every major asset class globally and overshadowing the dollar gains seen in real estate. While homes might be increasing in fiat terms, they are becoming significantly cheaper in BTC terms.
Macro investor and Bitcoin proponent, James Lavish, referred to global real estate as the largest available asset class for those seeking protection against inflation. He pointed out the $998 trillion in capital allocated to real estate and other global assets, all of which is gradually losing its edge to Bitcoin’s scarcity-driven, deflationary model.
While homes might appear to be sound investments on paper, their real purchasing power collapses when assessed against genuinely hard money.
The ‘Bitcoin pizza’ phenomenon: when value skyrockets
Trading your Bitcoin for other assets has proven to be incredibly costly over the years. Just ask Laszlo Hanyecz, who infamously traded 10,000 BTC for two pizzas in 2010. Back then, those coins were valued at about $41. Today, those pizzas would be worth over $1.1 billion. What seemed reasonable in fiat terms turned into a legendary loss in Bitcoin value, serving as a cautionary tale for anyone assessing wealth solely in dollars.
While media outlets highlight resilient or even rising real estate prices, a new reality unfolds for those with a Bitcoin perspective: a quiet crash in real estate when evaluated in BTC terms, coupled with inflation further diminishing fiat gains.
