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1 sat \ 0 replies \ @jackronaldi 13 Jul 2023 \ parent \ on: Opinion: Why BTC can't become the reserve currency bitcoin
I don’t think debt will be as prevalent as it is in the fiat system, mainly because the supply of bitcoin is limited, so there won’t be enough to pay back the interest on all debt if the percentage of the economy that is debt financed is too high.
As for housing prices, the reason they are so high and require so much debt to purchase is two fold imo:
  1. people are using housing as a store of value, in the absence of good alternatives
  2. the debt based, fractional reserve system requires inflation to survive. Meaning the natural deflationary force of technology is not allowed to function as it should.
It’s hard to know for sure, but I imagine a world where Bitcoin allows for a house to no longer be multiples of average income, and be affordable for the average pleb
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