[2016-02-15] Why interest rates are a powerful tool with Bitcoin

[LiteCoinGuy]

Why interest rates are a powerful tool with Bitcoin

Throughout the various cultures of the world, the primary difference between the rich and the poor, for much of our history up to and including today, has come down to who understands how to use their money to work for them. The least affluent class across cultures are known for spending their entire earnings each pay period on consumables and entertainment, then scraping by until more income is earned.

https://medium.com/@Magnr/why-interest-rates-a-powerful-tool-with-bitcoin-745352ebff99#.u5s56fklo

[aso118]

Nominal interest rates are a function of the risk free rate, risk premium and inflation.
With a deflationary currency like bitcoin, you can knock of the inflation bit.
The risk premium of course depends on the borrower - which is why you have obscene interest rates in the lending section.
I am curious about the risk free rate - would it be the same in USD and in BTC?

[odolvlobo]

Don't bother reading.

Most of the article talks about the magic of compounded interest, Yawn! The last two paragraphs talk about Bitcoin.

The title of the article should have been ,"A Brief History of Interest. Oh, and Bitcoin, too."