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Love your work - I have a question

What does credit look like in a deflationary environment with Bitcoin

I buy a house for 10 btc but loan 5 btc to make it happen. The house depreciates in value every year meaning at some point the loan becomes insolvent unless I pay it off faster than the depreciation??

I just can’t get my head around this ?

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Discussion

Jeff Booth 1y ago

Exactly - Debt in a deflationary environment is more expensive meaning that there will be far less of it. (And people will make mistakes on both sides of pricing it and the cascading consequences)

Charli Chase 1y ago

Right - so more considered decision making around what and how much debt to take on… meaning you carefully consider how you spend your btc…

Less debt in society is a good thing