I listened to the Saif and Saylor podcast.
I donโt think @saylor is being unreasonable. Gold was sound money, and you can still lend out gold to earn a yield. If Bitcoin is also sound money, then you should be able to earn a yield from it as well. Granted, we donโt have trustworthy banks that can handle this now, but maybe in the future. ๐
I donโt think so. Gold is not finite. Gold is scarce, but infinite. You can always โprintโ more gold. If you could lend all the gold in the world, you could mine more to pay interests.
If you could lend all the BTC in the world, where the hell you would get the interest when all 21.000.000 are mined and distributed?
We can make a system of lending and borrowing Bitcoin, but I donโt think interests can be paid in Bitcoin. I imagine a future where you lend bitcoin, and you get the exact amount back plus โreal economy goods or servicesโ in return as interestsโฆ am I crazy?
In the future, People are going to pay for goods and services in bitcoin and you will be able to get paid in bitcoin also.
Granted it wonโt be anytime soon though.
I donโt think it works under a bitcoin standard where you borrow bitcoin and pay interest in bitcoin.
Where does the interest come from? You can see problem at the extreme. For example, if I could borrow 21 million bitcoin (all of it) itโs impossible to pay any additional interest because nobody can create more.
As more and more bitcoin is borrowed, it becomes more difficult to repay interest.
Fiat solves this problem with liquidity injections whenever the banks run into problems.
People did lend gold but it was centralized and fractional reserved making this easier. And still banks were constantly failing. Bitcoin is more readily held in self custody so the this would make banks fail even faster.
