Michael Saylor, Executive Chairman of Strategy (formerly MicroStrategy), compares investing in bitcoin to buying real estate in downtown Manhattan during its early development, when population and economic concentration drove land values higher. The analogy hinges on scarcity: like prime real estate, bitcoin gains value as people, capital, and economic activity concentrate around it. Unlike traditional real estate, whose scarcity is often amplified by regulations and policy decisions, bitcoin’s supply is absolutely fixed at twenty-one million units, beyond the reach of any government intervention. Bitcoin’s accounting model, based on UTXOs (unspent transaction outputs), allows each unit to be directly controlled by its owner without banking intermediation. Although bitcoin generates no operating cash flow, it increasingly functions as a long-term store of value and as collateral to support credit formation.
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