The store of value function leads to bubbles for houses when houses are used for money.
Bitcoin can be considered a bubble for the same reason. The exchange value part of the good is the bubbly part. The bitcoin bubble may never deflate because it is the best money.
Bitcoin solves the problem with housing bubbles. There is never a tooth-paste bubble - because nobody uses toothpaste as a store of value.
Bitcoin can be considered a bubble for the same reason. The exchange value part of the good is the bubbly part. The bitcoin bubble may never deflate because it is the best money.
Bitcoin solves the problem with housing bubbles. There is never a tooth-paste bubble - because nobody uses toothpaste as a store of value.
I wouldn't say that Bitcoin will solve the problem with housing bubbles, just because there is no direct use value behind it. The house prices can't fall down and reach null for evident reasons (people need homes to live in). Though this doesn't in the least mean that some decrepit houses in dangerous places would be worth anything.
Also, I'm not sure about a tooth-paste bubble, but there had already been a tulips mania (you know what I mean).
Look, if houses fall down to the use value like you describe, and stay there forever, the house bubble problem is solved.
But this would have nothing to do with Bitcoin. If you still doubt my words, consider "paper" gold instead of Bitcoin. Did it prevent housing bubbles? It didn't, and the reason for this is just the direct use value which is present in the case of homes and absent in the case of gold (paper gold, I mean).