The BTC isn't MORE valuable; the items you buy are LESS costly (1 BTC = 1 BTC). You don't pay the loan back with something that is inflatable (USD); You pay it back w BTC.
You borrow 1 BTC to buy a house w 1% interest. 10y later you have worked enough to pay off that 1.1 BTC. The house now costs less BTC.
Does that answer you? I feel like there's more to it.
Not quite, I pay back 1.01 BTC and now have a house that is worth less than 1 BTC, say .9 BTC
My point is that it encourages hoarding, why buy things now that will be cheaper tomorrow?
This is not necessarily bad, the planet will love it, but it won’t solve issues of inequality.
There’s a lot to like about bitcoin but I can’t get past this. I like strong money, I’d love to see the FED keep rates high. But deflation is uglier than inflation.
I welcome any links to articles on deflation and debt in a world with a fixed currency like bitcoin
