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Author Topic: The whole idea of the deflation aspect of bitcoins being bad because of loans..  (Read 1575 times)
notig
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April 13, 2013, 02:59:48 AM
 #1

is not very well thought out IMO.

 Bitcoin is a voluntary currency. Therefore it's completely open to the free market. Even if bitcoin succeeds there will still be a free market. And if people still need or want to take loans then they will use a currency that offers them the best deal. If it's not bitcoin then they will simply get loans in a currency that isn't bitcoin. There could be a new cryptocurrency created for the explicit purpose of being one where loans are given in it and it could become easily interchangeable with bitcoins through exchanges and then you could have the whole loaning aspect of our financial system which people seem to think is a great idea. No one is going to want to store their wealth in that currency though because defaulted loans would devalue your wealth unless they were somehow paid for by the interest rates from other debtors.
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sounds
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April 13, 2013, 03:58:16 AM
 #2

I say the same thing, often:

If you need an inflationary currency, you sell your BTC for fiat.

Until BTC was introduced, however, there was no other choice. Now there is: if you need a deflationary currency, you sell your fiat for BTC.
MikeH
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April 13, 2013, 10:27:00 AM
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I see no reason bitcoins can't be loaned and paid back based on the initial value of the loan adjusted by current value, inflation or deflation shouldn't matter.
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