vipier on Nostr: Yeah, I've gone back and forth on this. But eventually, post-hyperbitcoinization, ...

Yeah, I've gone back and forth on this. But eventually, post-hyperbitcoinization, once bitcoin liquidity is massively deep, volatility should get quite low, and the deflation rate of bitcoin should roughly match the rate of productivity growth. Say, an average of a percent or two. At that point, bitcoin is still precious, but not like it is pre-hyperbitcoinization.

Risk will be incented.

If some are inclined to buy equity, then naturally some will be inclined to make loans as well.

If too little capital is being invested, then productivity will slow or go negative -> negative productivity growth means bitcoin buying power will decrease instead of increase -> risk will be more and more incented.

There's also the issue of fiat coexisting alongside bitcoin. Governments will always need and want this. I think this is a high probability. Perhaps those with bitcoin will lend out fiat against their bitcoin collateral.

Fiat may also be backed by central bank bitcoin reserves.