I'm not sure about where this comment is pointing but I'll have good faith is it isn't a tar with one brush.
The growth of an economy is equal to it's return on capital. Balance sheets must balance. Add-in 'long term growth' as in the short term banks and other money market intermediaries make terrible terrible decisions so what seems like growth is often hidden was, well, not growth.
> What is the future discounted future value of Bitcoin? That will depend on the Bitcoin interest rate, for which there is only a transaction value, there is no yield on Bitcoin. Not yield means no return on capital.
Generalise all individuals, companies, government, across an economy (I suppose it would have to be the global economy): As an aggregate (ignoring individual credit situations, this is an aggregate), can they conceptually apply for a Bitcoin loan of B10 @ 10% annual interest and with successful growth repay B11 next year with no change in exchange value of Bitcoin (i.e. there has been growth in the real economy)?
Until this market exists, where real value dominates speculative value, Bitcoin remains a commodity of negative intrinsic value return.
Edit: Financial companies allocate capital. How well they do it is under question by regulators too. Efficient allocation of capital is really important for creating growth.. obviously. Reward for allocation of capital... in my view should be a lot less shorttermist quarterly or annual results-chasing.
The growth of an economy is equal to it's return on capital. Balance sheets must balance. Add-in 'long term growth' as in the short term banks and other money market intermediaries make terrible terrible decisions so what seems like growth is often hidden was, well, not growth.
> What is the future discounted future value of Bitcoin? That will depend on the Bitcoin interest rate, for which there is only a transaction value, there is no yield on Bitcoin. Not yield means no return on capital.
Generalise all individuals, companies, government, across an economy (I suppose it would have to be the global economy): As an aggregate (ignoring individual credit situations, this is an aggregate), can they conceptually apply for a Bitcoin loan of B10 @ 10% annual interest and with successful growth repay B11 next year with no change in exchange value of Bitcoin (i.e. there has been growth in the real economy)?
Until this market exists, where real value dominates speculative value, Bitcoin remains a commodity of negative intrinsic value return.
Edit: Financial companies allocate capital. How well they do it is under question by regulators too. Efficient allocation of capital is really important for creating growth.. obviously. Reward for allocation of capital... in my view should be a lot less shorttermist quarterly or annual results-chasing.