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Hanshan · 2w
to turn it around, who decides the elasticity of the credit system built on top of the fixed layer?
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Neve Farms @Neve Farms
The individuals/businesses demanding credit and those willing to finance it. Similar to how anything is supplied, credit is simply a tool that has a market price based off supply and demand, and the price for credit is interest rates. Which naturally would vary location to location and based on how creditors view the riskiness of debtors. Supply of credit also should vary constantly as risks and conditions constantly change
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Guy Swann · 2w
If you have a central entity issuing infinite credit from nothing at an arbitrary price because they issue it from nothing, then everything you just laid out is meaningless. If on the other hand, you have a sound money where people are lending real savings and thus the supply is real and not make b...
Hanshan · 2w
I feel like we've had this conversation before but... nothing you're describing requires a fixed number of monetary units. theres no compelling reason to have a fixed number except "that's what Bitcoin is." and there are a number of well documented reasons why a static number is a bad idea. it's...