Even if you are unconcerned with mortgages, though, loans are the basis of most business operations; in a world where taking out loans doesn't make sense presumably we'd see a lot less economic activity and a lot more just sitting on money waiting for it to deflate. Unless you have some sort of alternate economy in mind (and I haven't met many Bitcoin guys who are planned-economy enthusiasts) switching to a deflationary model would be a complete economic disaster.
Bitcoin will eventually stabilize to an ever appreciating value asset. But what it will allow you to do is save for a house. If you have a business proposal that encourages people to pay you for a good or service, people will invest their savings in it and take on that risk. Banks will instead move back to providing capital to businesses, using savings from people that are willing to invest. Businesses will again focus on productivity increases, because that's how you get access to capital.
I also don't think it is going to be resisted quite as much as people think it will be. People still need to pay their taxes, and that is not going to stop. The main thing it is going to do is prick the bubble of consumer debt, and remove the banking middle-men from that space. That alone is a multi-trillion dollar industry, let alone the annuities that banks own and graft from, from those assets. Removing these people (i.e. banking debt suppliers) from positions of power, by strangling their access to capital, is a justification for bitcoin in its own right. Imagine a world in which banks didn't control governments.
That's the way it is supposed to work i think. It is pure genius.
I said : > It doesn't matter what they do.
They can adopt it, or not adopt it. It makes no difference whatsoever.
You should try it. It works really well. And beer is delicious.
Having another delicious beer right now on my bitcoin debit card. It has been a good day.
It tastes real enough.
Oh that's the crux of it alright. And why should someone take on debt for a fixed asset? Why exactly should a fixed asset increase in cost? Without debt to fuel that fixed-asset price increase, prices will again align with income, not the amount of debt people are capable of servicing. People will no longer acquire housing, leaving it empty, simply for the capital gain.
Bitcoin is the reckoning for that fixed-asset debt bubble.
> large business loan
If they have a business plan that allows them to create capital by having income greater than expenses, people will invest in their business. If they are just going to sit on assets and expect inflation to take care of it, they won't.