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by reader_mode 1832 days ago
Yeah that's all fine and dandy until you need to take out a loan and on top of high interest you also need to account for deflation - good luck getting a house mortgage and falling wages. Deflation puta pressure on price of work as well - but people don't like pay cuts.
2 comments
rawtxapp 1832 days ago
You know what happens then? House prices will fall because they won't have access to cheap money, so they'll end up being priced at their true value. Housing would stop being an investment, instead it would serve it's true purpose of providing lodging.
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jollybean 1832 days ago
Yes, and then you know what happens? Builders stop building because of dropping prices. Trees stop getting felled.

It's called a 'deflationary trap' and everything falls apart.

Nations need a stable currency to function, BTC is untenable.

There's not much to debate here because it simply won't work, it's Banana Republic kind of stuff. They'll never switch over to BTC as a nation it's pragmatically impossible.

If they had the ability to effectively switch over to BTC, then they'd have the ability to responsibly issue and manage a currency.

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reader_mode 1832 days ago
So you're going to end up paying more in real terms (since deflation), for a house that's going to be worth less, you're making less and you have to pay interest. Sounds like an amazing deal, would vote for bitcoin tomorrow !
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maneesh 1832 days ago
When you're one of the 70% of people who are unbanked in el salvador, there are no needs for loans or interest -- the concept barely exists.
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technotony 1832 days ago
It's very counterintuitive, but actually the more unbanked you are the more you needs loans/savings and the more complicated your personal financial balance sheet is. I'd recommend the book 'the poor and their money'[1] for the details on this, but essentially if you haven't got savings you are constantly borrowing and lending informally with your community to meet life needs like a new roof or school fees.

[1] https://www.amazon.com/Their-Money-Oxford-India-Paperbacks/d...

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lupire 1832 days ago
That's having a tightly knit society where people take care of each other instead of ignoring the poor people to die alone.
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