Jean-David Bar's avatar
Jean-David Bar 10 months ago
How would bitcoin make loans and debts obsolete ? What would prevent banks to lend bitcoin or bitcoin derivatives ? There will always be people or entities in need for upfront cash to launch businesses, won't there ?

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Jean-David Bar's avatar
Jean-David Bar 10 months ago
Oh you were already talking about that in the moment between my thinking and my post :-) Still doubtfull though
The core idea is that Bitcoin is a deflationary asset, and its fixed supply means there's no central authority that can inflate or create money. This limits the ability of banks to issue loans the way they currently do, based on fractional reserve banking, which relies on the ability to create more money. In a Bitcoin standard, lending would likely shift toward a more direct, collateralized model. This would make loans more tied to real, existing value and might lead to more responsible lending practices. In a Bitcoin system, this could encourage more people to save and invest responsibly, knowing that the purchasing power of their money is more stable. Borrowing could still happen, but it would likely be less leveraged and more sustainable since the cost of borrowing would reflect the true value of Bitcoin. Bitcoin's decentralized nature means it's harder for banks to control lending the way they do with fiat currency, which could lead to less reliance on debt and more emphasis on sustainable, responsible finance. You guys need to research the early 1900's because that's where we are heading especially since Trump is on his way to removing the IRS & FED. The good times are over for people who love borrowing money.