Imagine you lend your friend $100, and they promise to pay you back with interest in a year. The interest rate is set at 3%. Now, imagine the bank raises the interest rate to 5%, one year later; your friend's loan now has less value since better loans (bonds) are available. To compete, you lower the price of your bond (loan) putting it on sale trying to attract lender/ debt buyers hence driving up its yield or return percentage for that previous buyer like on a clearance rack. This concept applies in all sectors of finance: stocks, bonds and anything with an investment value. It further strengthens arguments for the superiority of Bitcoin's verifiable scarcity model independent from central authorities.#finance #interestrates #bitcoin