Re:Bitcoin Price Hits All-Time High of $19,786, Topping 2017...
by cloudinshape on Monday November 30, 2020 @02:36PM
(#25257930)
> Those things got cheaper because of advances in supply chains and technology.
That is why things get cheaper all the time, yes.
> Why in the world would I ever loan to a small business if I could see gains just by holding the money?
The same reason you do now, which is the only reason you ever lend money: by lending it (to someone more productive than yourself of course) you gain more.
Re:Bitcoin Price Hits All-Time High of $19,786, Topping 2017...
by arcticbull on Monday November 30, 2020 @02:58PM
(#25258182)
You have to compare it to your risk free return lol
Re:Bitcoin Price Hits All-Time High of $19,786, Topping 2017...
by anythingdude321 on Monday November 30, 2020 @03:20PM
(#25258444)
the return on holding is not risk free. in the absence of progress money will be inflationary as there are more people competing for fewer goods. there's no free lunch
I mean you can just do the simple mathematics. Suppose there are 100 utility units of wealth in the world - machinery, homes, anything tangible to improve lives - and 100 units of currency to match. Through human labour we produce another 100 utility units. Now each unit of currency can provide me 2 utility units. This is just a system that rewards wealth more than work, even more so than our current system.
Let's look at capital flows. Why in the world would I ever loan to a small business if I could see gains just by holding the money? Why would I ever give companies money in IPOs? There is much less of an incentive to direct capital to those who can be the most productive with it.