Re:Bitcoin exchange rate reached $100 USD per BTC
by DennisP on Monday April 01, 2013 @08:53PM
(#5477015)
Assuming they pay you back in the same currency, they're actually paying you 2% on top of the 3%, giving you a 5% return.
Today, with dollars, you can get a risk-free return by investing in T-bills. Riskier investments pay a higher return in exchange for higher risk. The risk-free return from holding a deflationary currency plays essentially the same role as the risk-free return in T-bills.
Today, with dollars, you can get a risk-free return by investing in T-bills. Riskier investments pay a higher return in exchange for higher risk. The risk-free return from holding a deflationary currency plays essentially the same role as the risk-free return in T-bills.