You can have credit in a full reserve banking system, but it'll be very different to how credit works today.
Credit as it is today is fiat subsidised and backed. So it is artificially cheaper, it causes the boom-bust cycle, and it rewards insiders.
Discussion
What's the expected credit rate in full reserve?
Having read a lot of Bitcoin books, each one giving a particular insight from each author
What I particularly liked about nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a Broken Money was the explanation of early forms of credit
Ie I give you something of value, if we were in a high trust tribe, then I would be happy noting down that you owe me something in the future, & storing that debt in my head. Ofc this doesn’t scale. But it pre-dates money in a sense.
Point being, I absolutely agree there will be a credit market on a bitcoin standard, it will however be radically different today, in large part due to the cost of capital being much higher, therefore debt risk much higher, so interest rates will have to reflect that
Fascinating one to watch play out
Which in turn means the debt won't be used to fuel non profitable nonsense, as that'd lead to default. Instead debt would be used to fuel the best, most profitable ideas only. The 10x, 100x or 1000x ideas.
Exactly. A bitcoin credit rate would need to factor in the expected deflationary effect of our technology advances over the loan period
💯 My strategic bitcoin reserve may in the future take offers to lend some sats out to those with talent/skill/good ideas AND is willing to pay my premium/interest.
Right now my rate is about 75%