penglunds on Nostr: saifedean Just watched the pod with Michael. As far as I’m concerned, you are on ...
saifedean (npub1gdu…6nak)
Just watched the pod with Michael. As far as I’m concerned, you are on the same page about borrowing, but Michael doesn’t seem to get your point.
If I’m not mistaken, you’re just pointing out that it’s realistic that nominal interest rates will go to 0% under BTC, but that doesn't mean the real interest rate will be zero. Because BTC is deflationary, the real interest rate under 0% nominal rate will be whatever the deflation rate is. So let's say it's 3%, that means the borrowers will earn 3% a year by borrowing their money for 0% nominal interest rate.
Wasn’t that the point you were trying to make?
Just watched the pod with Michael. As far as I’m concerned, you are on the same page about borrowing, but Michael doesn’t seem to get your point.
If I’m not mistaken, you’re just pointing out that it’s realistic that nominal interest rates will go to 0% under BTC, but that doesn't mean the real interest rate will be zero. Because BTC is deflationary, the real interest rate under 0% nominal rate will be whatever the deflation rate is. So let's say it's 3%, that means the borrowers will earn 3% a year by borrowing their money for 0% nominal interest rate.
Wasn’t that the point you were trying to make?