Bill Cypher on Nostr: I disagree. Remember that banks print the money they give out in traditional loans. ...
I disagree. Remember that banks print the money they give out in traditional loans. AKA they get that money for free. Bitcoin lenders are shut out of that game and must acquire money the hard way to make a loan.
That explains the clown world scenario where I get better rates unsecured than with bitcoin collateral.
I think the balance never tips. Bitcoin loans will always reflect the risk inherent in a loan. Fiat loans will simply go away as they make no sense loaning something worthless.
That means no bitcoin loan will ever reach the 0% we get today after accounting for inflation in the fiat world. It simply makes no sense to tie a loan to a scarce asset and lose money guaranteed.
That explains the clown world scenario where I get better rates unsecured than with bitcoin collateral.
I think the balance never tips. Bitcoin loans will always reflect the risk inherent in a loan. Fiat loans will simply go away as they make no sense loaning something worthless.
That means no bitcoin loan will ever reach the 0% we get today after accounting for inflation in the fiat world. It simply makes no sense to tie a loan to a scarce asset and lose money guaranteed.