Laeserin on Nostr: Yes, but what happens when they default? Who pays remainder? Insurers, backed by ...
Yes, but what happens when they default? Who pays remainder? Insurers, backed by taxpayers? Do lenders just co-finance defaults from other loans? But then imagine how tempting it would be to default on such onerous loans, and how expensive the other loans would be. Wouldn't that eventually squeeze the profitability out of almost all lending?
Like, you'd have to find some place that increases by 30%+ in size every year and has a veritable monopoly that they can sustain for years. How do they sustain the monopoly, when they can make Bitcoin that easily?
And you can't tell who they are, at the beginning. VCs usually throw money at a bunch of different projects and see what turns up. But how long could you throw Bitcoin around? Are we just assuming that they never run out of money?
Maybe I am just too stupid to understand how this is supposed to work. 🤷♀️
I had assumed Bitcoin would make such things unprofitable and we would end debt servitude. But it's like, we will just have bigger, more onerous debts, in the hardest currency possible, while prices are falling.
Like, you'd have to find some place that increases by 30%+ in size every year and has a veritable monopoly that they can sustain for years. How do they sustain the monopoly, when they can make Bitcoin that easily?
And you can't tell who they are, at the beginning. VCs usually throw money at a bunch of different projects and see what turns up. But how long could you throw Bitcoin around? Are we just assuming that they never run out of money?
Maybe I am just too stupid to understand how this is supposed to work. 🤷♀️
I had assumed Bitcoin would make such things unprofitable and we would end debt servitude. But it's like, we will just have bigger, more onerous debts, in the hardest currency possible, while prices are falling.