You think that people with no capital won't borrow to finance things if we use Bitcoin instead of dollars?
Discussion
Your asking questions with the same mindset Saylor came with into the interview with Saif.
I would summarize Saifs points. Borrowing doesnt necessarly mean yield.
People will borrow, but either for free. because there is no need to get interest, since the currency id deflationary.
Or people will borrow buy means like IPOs and selling project shares, where they take risk with the lender.
That wasn't Saif's point. Saif envisions a world where you're exchanging your bitcoin for equity.
IPOs are not borrowing. It's an initial public offering meaning you pay money for equity in the company.
That is exactly what i say. Saif believes we will be exchanging bitcoin for equity through things like IPOs (equity). That is literally my last line.
And IPOs are a form of borrowing/lending. where the objective of the borrower is to get cash from someone with a promise of future returns.
As for borrowing through banks. Saif believes that will slowly stop, at least at the government level. and private lending might happen for free (he even argues for negative yield).
Stock isn't borrowing. If you buy stock, you are buying ownership of the company. Future returns are never promised. Not even future dividends are promised - the board of directors, elected by the shareholders, which would be you if you bought stock, can change the dividend at any time. The one thing I do criticize is the preferred vs common stock distinction - preferred is much more expensive and basically impossible for normal people to buy and issuance of new shares doesn't dilute the preferred stock. That's obviously predatory and should be illegal.
Where do you find this discussion? I'm not on X... I think I understand Saif's arguments based on what people say here, but I think I should actually listen
I think there will still be borrowing and this won't go away. However the interest rate with a money that inflates less than 0.1% annually in 21 years cannot be as high as it is for a fiat inflating 7%+ per year on average. Given that bank deposits are not able to sustainably yield 5% in fiat now, I don't see how can Saylor expect BTC deposits to sustainably return 5% in interest in 21 years. Maths simply don't work, that BTC denominated interest rate will have to come down.