Dr. Fernando Morales on Nostr: We don't know how a hyperbitcoinized world looks like, so it's just theories right ...
We don't know how a hyperbitcoinized world looks like, so it's just theories right now. Nonetheless, humanity has seen a steady long term decline in interest rates over the past 5,000 years, interrupted by the occasional calamities like war and natural disasters. This all stopped in the 20th century with fiat money.
Having said this, there's a possibility the trend could return and send interest rates to 0% or near it. How? Because money always has a carrying cost (bank fees for example or it being stolen) that is always larger than 0. So if holding money has a cost, then not lending money has a nonzero cost, meaning people would be offering to lend money at lower and lower rates.
Saifedean Ammous really goes into this on chapter 14 of his book, Principles of Economics, and he seems to be the only Austrian economist out there talking about this.
Having said this, there's a possibility the trend could return and send interest rates to 0% or near it. How? Because money always has a carrying cost (bank fees for example or it being stolen) that is always larger than 0. So if holding money has a cost, then not lending money has a nonzero cost, meaning people would be offering to lend money at lower and lower rates.
Saifedean Ammous really goes into this on chapter 14 of his book, Principles of Economics, and he seems to be the only Austrian economist out there talking about this.