#791: The Bitcoin Playbook for Commercial Real Estate Owners & Investors with Chris Drzyzga

SPEAKER_1 (0:07)

You've had a dynamic where money's become freer than free.

SPEAKER_2 (0:10)

When you talk about a Fed just gone nuts, all the central banks going nuts. So it's all acting like safe haven.

SPEAKER_1 (0:18)

I believe that in a world where central bankers are tripping over themselves to devalue their currency, Bitcoin wins. In the world of fiat currencies, Bitcoin is the victor.

SPEAKER_2 (0:29)

I mean, that's part of the bold case for Bitcoin.

SPEAKER_3 (0:31)

If you're not paying attention, you probably should be.

Marty Bent (0:36)

I wear this hat specifically for this because I think it's a key meme that aligns very well with this playbook that we're going to discuss, Chris.

Chris Drzyzga (0:46)

I couldn't agree more.

Marty Bent (0:49)

Well, thank you. Coming back on the show, we're here to discuss another playbook, one which you wrote and we're going to talk about today. We're publishing through TFTC and we're going to record this episode.

Going through the playbook, the playbook is the Bitcoin playbook for commercial real estate owners and investors. You were on the show probably almost exactly a year ago.

Chris Drzyzga (1:16)

Yeah, about a year ago.

Marty Bent (1:18)

About a year ago where we talked about Bitcoin and commercial real estate.

From a high level, you've spent some time really digging and putting together this playbook. Not only that, but have implemented the playbook in practice with a couple of projects, which we'll talk about, but before we jump into the playbook, maybe for the audience who may not be familiar with your background, let me give a brief intro and then after that, what the listener will learn if they stick around till the end.

Chris Drzyzga (1:52)

Yeah. Thanks again for having me. I'm excited to be back and run through the playbook here with you today. As far as my background is concerned, I'm a commercial real estate broker and investor based out of Southern California. Been doing it a little over 16 years now and found Bitcoin along that journey and when I found Bitcoin, I started to try to think about different ways to integrate Bitcoin into the commercial real estate assets so that it was better positioned to navigate the new economy they were inevitably going into.

Over that process, over that timeline, there were a few different categories that I came up with to integrate Bitcoin practices and policies into the asset. That can be from a single asset, single property perspective or across a broader portfolio.

That's how we got here today was following our conversation about a year ago. I think I had laid out my personal outlook on the commercial real estate industry at large and some of the really major headwinds that were on the horizon. Some of those headwinds were widely accepted by the industry and others less so.

Just to run through them, the first one had to do with accelerating monetary debasement. The second one had to do with the growing economic and functional obsolescence that comes with aging buildings and aging inventory across the country. The third was Bitcoin as a superior store of value, the rise of Bitcoin as a superior store of value, and the fact that capital has more options than ever before. Ultimately, connecting those three onto the commercial real estate industry, what were the implications of that? As I was getting ready for our conversation today, I was like, hey, let's take a look back and see what happened over the last year. Well, on the monetary debasement point, the monetary base expanded another five and a half percent, give or take over the last 12 months. On the aging inventory category, we are in the midst of the largest scale demolition and redevelopment cycle. The industry has experienced in many years. Today, most of that is concentrated in the office sector, but in my opinion, that will eventually make its way into other property types. Then third, with the rise of Bitcoin as the new apex financial asset, that has implications for valuations and capital allocation, not only across commercial real estate, but across all markets and investments. You start to look at some of the milestones that Bitcoin and some of the adjacent products have achieved in such a very short period of time. The ETFs, some of the most successful products in the history of Wall Street, digital credit products such as STRC going from, I think it was a $2 billion IPO to $10 billion in a year.

Products like Seda, they didn't exist when we chatted last time. Today, it's paying daily dividends. Those are just a couple examples of Bitcoin doing its thing and continuing, not only its maturation, but its integration into markets and business.