100 sats \ 4 replies \ @anon1 13 Jul 2023 \ on: Opinion: Why BTC can't become the reserve currency bitcoin
In a Bitcoin world, the role of debt in the economy would be vastly reduced because loaners would have a much lower incentive to loan out a currency that is deflationary. People would buy houses upfront because mortgages would be very expensive and risky to take.
This would mean that instead of getting a mortgage and paying it off for 30 years, people would likely rent for an extended period of time till they save enough to outright buy a house.
Yeah, that sounds like a nightmare.
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To me it does not.
In a Bitcoin world, housing would become cheaper over time compared to your savings.
Also, the price of housing (in terms of hours of labor) would likely be much lower in general because housing and real estate currently hold a massive store of value role in our economy that would be greatly reduced in a hard money world.
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that was how all the empires worked before Keynesians.
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Housing prices today is basically based on how much people are able to take on in debt. Lowering interest rates pumps the price on housing. This is why a $100k house 20 years ago now cost $10M and it's all about passing around debt to the greater fool that is now stuck as a fiat slave to the banks.
Ever heard of people being able to afford their houses full in cash on one salary back in the days? Yep, that was on the gold standard.
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