You’re right. I was thinking about a shorter timeframe than you. I was thinking about this intermediate phase and not the steady state when BTC fluctuates based on increases or decreases in productivity.
A similar analogue might be how ancient finance was conducted under the gold standard. I remember reading about debts of gold. I also remember reading about how Islamic and Jewish law banned loans with interest. I assumed that this was because they used the gold system.
One thing I can’t yet reconcile… imagine that the year is 2140 and all 21 million BTC have been issued. Let’s say that 1 million BTC was lent across the economy and 10k interest is repayable along with the debt of 1 million.
But where does this 10k come from? Presumably the borrowers are now “forced buyers” who have to acquire it at any price. Even if they could, would they know the ultimate cost of the loan from the start?
In the fiat system, the money supply is flexible. People can create new money out of thin air by taking out a bank loan. This might relieve the pressure for forced buyers.
Part of me believes that the bitcoin world will be the opposite of the bizzaro fiat world. Fiat finance is based on debt and infinitely expanding money. Perhaps the opposite could be equity in a world of ultimate hard money. Dunno. I guess we’ll see!
techfeudalist
npub1nz…0yxqu
2023-02-07 07:19:56 UTC
in reply to nevent1q…x7hz
Author Public Key
npub1nz3cd3mx4jf9paxwrdgqvchaprjdge9pj9t58mkusw74q5saajkqu0yxquPublished at
2023-02-07 07:19:56 UTCEvent JSON
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"content": "You’re right. I was thinking about a shorter timeframe than you. I was thinking about this intermediate phase and not the steady state when BTC fluctuates based on increases or decreases in productivity. \n\nA similar analogue might be how ancient finance was conducted under the gold standard. I remember reading about debts of gold. I also remember reading about how Islamic and Jewish law banned loans with interest. I assumed that this was because they used the gold system. \n\nOne thing I can’t yet reconcile… imagine that the year is 2140 and all 21 million BTC have been issued. Let’s say that 1 million BTC was lent across the economy and 10k interest is repayable along with the debt of 1 million. \n\nBut where does this 10k come from? Presumably the borrowers are now “forced buyers” who have to acquire it at any price. Even if they could, would they know the ultimate cost of the loan from the start?\n\nIn the fiat system, the money supply is flexible. People can create new money out of thin air by taking out a bank loan. This might relieve the pressure for forced buyers. \n\nPart of me believes that the bitcoin world will be the opposite of the bizzaro fiat world. Fiat finance is based on debt and infinitely expanding money. Perhaps the opposite could be equity in a world of ultimate hard money. Dunno. I guess we’ll see!",
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