Wealth Systems

Wealth Systems

Why Digital Real Estate is Devouring the Physical World

Matt McDonagh's avatar
Matt McDonagh
Nov 08, 2025
∙ Paid

We’ve talked about the difference between wealth engines and wealth batteries a lot.

The wealth engine is the system that generates your wealth: your business, your career, your hustle. The battery is where you store that hard-earned economic energy, hoping it doesn’t leak out over time.

For generations, the premier wealth battery, the one our parents and their parents swore by, was real estate. A plot of land, a roof over your head. It was tangible. You could touch it, see it, and feel secure in its permanence. It was the bedrock of wealth, the ultimate store of value.

But is it?

We’ve already established that real estate is a poor wealth battery, laid out the case here:

Don't Be a Real Estate Investor

Matt McDonagh
·
December 29, 2024
Don't Be a Real Estate Investor

Real estate is a poor wealth battery and an even worse wealth engine.

Read full story

It’s a leaky, inefficient, high-maintenance container for your capital. It’s illiquid, expensive to manage, and chained to the fate of a single geographic location. It’s an analog solution in a digital world.

What if the concept of “prime property” was about to be redefined?

What if the most valuable real estate in the world wasn’t on a coast, in a capital city, or nestled in a countryside? What if it existed everywhere and nowhere at once, accessible to anyone with an internet connection?

Welcome to the world of digital real estate. Welcome to Bitcoin.

This isn’t just an analogy. Bitcoin is the most absolutely scarce, most pristine, most perfectly engineered real estate ever created. And it’s about to absorb the value that has been mistakenly stored in physical buildings and land for centuries. This isn't a prediction for the next decade. The game theory is set, the capital is coiled, and the great migration is about to happen.

Here is the thesis: Bitcoin will end up capturing the majority of the global monetary premium currently locked in physical real estate. And it's going to happen faster than anyone can possibly imagine. The next 10 years will mark the largest wealth transfer in human history.

I’ve made the case against real estate investing before, but we’re going deeper into the Matrix this time.

Deconstructing the Myth of Real Estate

Before we build the case for the new world, let's put the final nails in the coffin of the old one. The romanticism of physical property ownership dies the moment you have to deal with its reality.

Friction is the Enemy of Wealth

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