Damus
Bored Satoshi · 88w
Under the Bitcoin standard, people will still borrow Bitcoins to buy houses or other assets. These loans will be cheap, like 0.5% rather than 5% and they will have high liquidation penalties. Exampl...
DataNostrum profile picture
Ok, you're talking about a scenario where Bitcoin is 100x bigger than it is today. I still don't know why anybody in their right mind would borrow bitcoin to repay in 10+ years, especially with the liquidation risk. It just seems like this type of lending will become rare.
Also, if Bitcoin becomes the primary store of value, it will demonetize real estate, so it's unlikely that any standard real estate would outperform the deflationary store of value (maybe some rare/premium real estate could).
Bored Satoshi · 88w
People will borrow bitcoin because they will have no other options. If someone is lending you in $$$ they would be the holders of $$$. The right question here would then be "who in their right might would hold dollars in the future".