csupnig on Nostr: Recently I heard Giovanni Santostasi say on the WiM show that he has a hunch, ...
Recently I heard Giovanni Santostasi say on the WiM show that he has a hunch, #Bitcoin could actually prevent the USD from going into hyperinflation - however, he could not really explain why that is.
I though a bit about that and came up with the following reasoning. Individuals holding BTC, with increasing prices will be able to pay back USD loans they took out.
Sooner or later banks will refrain from giving out new loans, either because just holding BTC is creating more returns or because interest would have to get competitive with BTC returns in order for giving out new loans to pay off.
Or on the other hand, maybe every bank will realise that they can create even more loans to buy BTC.
How do you see the relationship of BTC to the USD hyperinflating?
I though a bit about that and came up with the following reasoning. Individuals holding BTC, with increasing prices will be able to pay back USD loans they took out.
Sooner or later banks will refrain from giving out new loans, either because just holding BTC is creating more returns or because interest would have to get competitive with BTC returns in order for giving out new loans to pay off.
Or on the other hand, maybe every bank will realise that they can create even more loans to buy BTC.
How do you see the relationship of BTC to the USD hyperinflating?