Subnostr

I think Bitcoin will help us eliminate usury over the long term, because if we can make it the standard our system won't be founded on debt and usury. It will at least make fractional reserve banking less viable and thus stabilize the lending system to no longer unfairly favor those who know how to game it.

In the years since 1971, the loan amounts for home, auto, college, etc. has exploded, rendering savings untenable, especially because the depreciation inherent to fiat currency.

An appreciating currency will reduce the desire to lend it, and thus increase interest rates and decrease loan longevity, which will make the total value of loans to go down, and with it prices also, making savings much more viable.

DOUG WILSON 1y ago

That's an interesting take. At the surface looks like it makes sense. It wouldn't abolish usury, but depending on the definition of usury, it might help curtail the worst forms of it (payday lending etc.) I wonder however, the implications of the contraction of capital for econimie such as the US that need debt to function as they currently do. How do they "switch", so to speak?

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Discussion

James A Lewis 1y ago

It wouldn't abolish usury, but only help. Usury and it's admissibility in society is dependent on the idea that the man in need owes those with means more than was given to begin.

There is a balance, I believe, because it is better for the poor man to gain decent abode for his family and pay a little more for it over time than to save and save and only acquire it once his children are grown, but this can be accomplished without taking advantage of his need and capturing him into perpetual debt.