Replying to Avatar MAHDOOD

Let’s say I created my own currency called Pepecoin and controlled the printer for this currency. I print 100 Pepecoins and loan it to you at 3% interest. I expect you to pay me back 103 Pepecoins next year. I will only accept payment in Pepecoins.

A year has passed and payment is due. You were unable to magically create another 3 Pepecoins out of thin air because only I can print them. So you are in debt. Sounds like you need another loan. 🔁

Is this not how fiat works at the simplest level? #asknostr
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Sourcenode 1y ago

Yes. Alternatively lending on interest in a finite currency like bitcoin is even harder to pay interest on.

Ultimately all interest bearing loans are usury in my view.

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MAHDOOD 1y ago

In a Bitcoin standard, like with the gold standard, the need for loans shouldn't be very high because the currency would appreciate in value. Whatever you need a loan for, you likely can just save for as your purchasing power grows.