This was a very worthwhile podcast with nostr:nprofile1qqsyx708d0a8d2qt3ku75avjz8vshvlx0v3q97ygpnz0tllzqegxrtgpr9mhxue69uhhyetvv9ujumn0wdmksetjv5hxxmmd9uchr0qv and nostr:nprofile1qqs2xs05tluhtr6hpgsmqqxp04898gayjlyrjlexcrndv8j6el784xqpr9mhxue69uhhyetvv9ujumn0wdmksetjv5hxxmmd9ugxrggw because it opened the debate of credit in a future Bitcoin world 🙏
https://www.youtube.com/watch?v=k7XhzXMSAPo&t=8410Not
It raises my eyebrow when Michael speaks of putting consumers' BTC into custody of "trustworthy banks" to earn yield 🤔
- Why would banks alone provide such services? In a real Bitcoin world, can't there be peer-to-peer, decentralized, self-custody borrowing and lending? Wouldn't that be worthwhile to build and support? It's being done, but the Bitcoiner resentment is strong.
It also makes me listen carefully when Saifedean responds that credit eventually only works with a lender of last resort and that with a deflationary currency credit will be less and less attractive over time.
- I would have loved if Michael had given Saifedean more opportunity to elaborate on that. However, at the moment, I also see credit as driver for economic activity, for sure in a transition period, but even in a Bitcoinized world. Interest rates play the role as the price of money. There won't be that massive fractional reserve lending anymore ... but still, especially on a peer-to-peer decentralized basis, simple lending and borrowing seem like natural activities, no?!
Now, even with Bitcoin as deflationary currency creating abundance in society through falling prices all around, wouldn't there still be the demand for credit finance? nostr:nprofile1qqsg86qcm7lve6jkkr64z4mt8lfe57jsu8vpty6r2qpk37sgtnxevjcpp4mhxue69uhkummn9ekx7mqpp3mhxue69uhkyunz9e5k7qgkwaehxw309ahx7um5wghx7mnnv968xtn0wfnsurtqc6
I think that's a highly relevant topic for Bitcoiners to wrap their head around and I'd be glad to read/hear more about it and go through possible scenarios 🙏
