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Lawjarp2 t1_j4ezuq0 wrote

That's partly because the whole point of diamond is to gift something rare and beautiful.

(1) NFTs are a great example of artificial scarcity. They put a limit on number of copies and call it rare. Then base real money on rarity.

(2) Some people even tried to create a VR/meta earth and sell land as limited quantity when literally it can be as big as one wants it to be. It's frustrating enough to have high land prices in the real world so they went ahead and made it in the virtual one.

(3) Governments restricting the amount of land where houses can be built is another form of artificial scarcity. This is what creates high home prices.

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PoliteThaiBeep t1_j4gmsqe wrote

You can buy land incredibly cheap, I don't get it. If anything it's undervalued given fundamental limits of land on earth.

Building a house 2000 SQ ft house with modern technology is ~$400000 give or take. Land prices for a lot to build a house go from almost nothing to $500000 or more in metro areas.

But nothing stops you from building a 400k house on a $20k land lot 2 hours from the metro area. It'll actually be cheaper to buy an existing house there for $350k all together with land. Yeah it'll be older and not as energy efficient, but a house.

Or you can buy literally acres of endless land in the desert for almost nothing.

In fact there's an artificial mechanism for lowering the value of land and houses - it's called property taxes. 1% in California, 2% in Texas IIRC.

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