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by ahnick
1953 days ago
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For the same reason that people don't just leave all their money tied up in ETFs or indexed mutual funds. If you really want or really need something, then you are willing to give up on the opportunity cost of your asset appreciating. In a pure BTC environment, the borrower is employed and being paid a salary in BTC. Loans would work just like in an inflationary environment, except now the overall deflation rate of BTC would be taken into account during loan origination. Bitcoin is not a good asset to do loans in right now as it has high volatility, but as ownership of Bitcoin becomes more and more dispersed, then the volatility will reduce. Once the volatility of the asset is stabilized, then the depreciation rate could be factored into loans. https://bitcoin.stackexchange.com/questions/1899/if-the-econ... |
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