tetsuo on Nostr: People would do better by just buying #Bitcoin and holding it rather than running a ...
People would do better by just buying #Bitcoin and holding it rather than running a business. Investors for sure would do better to just buy Bitcoin instead of investing in businesses.
What does this mean if Bitcoin is the money? If the business owner takes a loan in bitcoin, they will owe more purchasing power over time as the loan term progresses. There is less incentive to apply for loans. Investors in businesses can do better just buying bitcoin than they would do investing in a business. There is less incentive to invest in businesses.
Yet, society needs the goods and services businesses provide. We will inevitably maintain businesses to provide them. Business owners and their partners can save in bitcoin and thereby gain the capital to create businesses which they couldn’t do with fiat. But why would they? For many of the goods and services businesses we need, their IRR would be smaller than Bitcoin's.
It seems there must be an incentive beyond making money to create businesses in a Bitcoin world.
What does this mean if Bitcoin is the money? If the business owner takes a loan in bitcoin, they will owe more purchasing power over time as the loan term progresses. There is less incentive to apply for loans. Investors in businesses can do better just buying bitcoin than they would do investing in a business. There is less incentive to invest in businesses.
Yet, society needs the goods and services businesses provide. We will inevitably maintain businesses to provide them. Business owners and their partners can save in bitcoin and thereby gain the capital to create businesses which they couldn’t do with fiat. But why would they? For many of the goods and services businesses we need, their IRR would be smaller than Bitcoin's.
It seems there must be an incentive beyond making money to create businesses in a Bitcoin world.