imnuso on Nostr: Unpopular opinion: even post hyperbitcoinization we will have fractional reserve, ...

Unpopular opinion: even post hyperbitcoinization we will have fractional reserve, credit, and inflation

quoting note1fad…ar45

People didn't move away from gold because it was too scarce (it isn't).

They just added a more liquid layer that would eventually become fiat. We are doing the same thing now with bitcoin, lightning, ecash, etc. Hopefully not back to fiat though.

Btw, secondary money, credit, and some elasticity between them isn't a bad thing. Gold backed paper money came along with an unprecedented level of human progress.

I think this is because such a monetary setup allows for accelerated expansion and contraction phases based on societal needs. It optimizes risk management, liquidity, capital allocation, etc.