37 sats \ 4 replies \ @orangecheckemail_isthereany 19 Sep \ on: I liked Saylor, now I think maybe he is Bitcoins biggest problem bitcoin
I did find it strange that it appeared Saylor could not understand the concept or the utility of savings without yield.
Your savings don't have to yield anything on a sound money standard, isn't that literally the main point of bitcoin for many people? People who don't want to invest, who aren't interested in yield but intead just want to keep what they've got (without risks that come with investments) plus potentially becoming the beneficiary of innovation/invention-driven price reductions.
Isn't the whole point that the need for yield disappears in many cases because the only reason people need yields is because the money continually inflates. When that problem is solved then a whole classes of yield-bearing investment instruments become unnecessary namely those that are used as an alternative for saving because saving money doesn't work if the money is broken.
Another thing which I found very strange happened during the part where they were talking about whether credit will still exist deep into a free market on a bitcoin standard. I tend to agree with Saylor that there will exist a supply and a demand for credit in a free market on a bitcoin standard. I think Saylor made some good points.
But then Saylor went on to claim that Saif wants to ban credit seconds after Saif said literally the opposite. And multiple times before that Saif repeated that he was not making any claims about what ought to happen, but instead about what he thinks will happen as a natural result of the economic logic / the incentive structure.
Saylor should have kept arguing on that same level instead of inventing straw men to attack. That was disappointing.
Still I like Saylor alot and one of the big reasons for this is his focus on remaining constructive but that quality sadly could have been on better display this episode.
"In the glorious United States, a Mr. John M. Perry lent to the US Government 10
000 dollars in gold, on the understanding that he will be repaid later on 10
000 dollars in gold of the same standard, and meanwhile 4.5% interest each year. All this according to the law and obeying all the proper forms mandated by whatever regulation in force at the time."don't lend your bitcoins.
reply
I have little doubt that the use of credit will reduce much.
Instead of taking out a loan I suspect many will simply save money for a few years and start their business out of their savings.
Generational wealth will be feasible for small income families and the accumulated "money under the mattress" might be used by children and grandchildren etc to start a business or buy a house.
I'd expect the demand for borrowing money to be smaller because money can again function as savings technology.
And the demand for lending out money at interest to be smaller
(One of the reasons that people lend out their money disappears under a sound money. Savings don't have to produce yield if there's no inflation. In that world you can just save the money. 0 yield keeps up with inflation just fine in that system.)
I'd nevertheless expect some people to still opt for a loan e.g. when they want to keep full ownership of their company. They will pay the interest from the profits of the business after it got off the ground using the borrowed money. And I suspect they'll find a counter-party willing to take the risk of the business failing in order to earn money in the form of interest,
The one who takes out the loan would face a risk that the money appreciates as it covers a growing economy and therefore the real value of the sum that is owed increases. It may be more difficult to extract a given amount of money out of the economy in the form of profits e.g. because of innovation, invention and competition force a business to lower prices.
reply
I agree with most of that. It was interesting how triggered he got. For me that is a huge factor. It is easy for me to see that he felt challenged and that there are parts of the picture he doesn't want to see. I think it's all good for Bitcoin regardless..everyone is on a different journey with it and in the end time will tell. I have a feeling Saylor will get humbled at some point.
reply
He's between two worlds. There are probably things he believes in, but being in his position he doesn't want to say. And got angry when Saif pushed him to the wall and kind of forced him to admit.
One telling example was when he said he wanted the transition from fiat to bitcoin to be slow, and Saif laughed pointing out that what Saylor is doing is accelerating the collapse of fiat and not slowing it down.
reply