In the Gold vs. Fiat case it's easy to pick the 'Scalability' & 'Ease-of-Use' winner because both of those values were higher for Fiat.
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In our case of BTC vs. Programmed Inflationary Digital Fiat, 'Scalability' & 'Ease-of-Use' are exactly equal, so we have to then look at "which property is the market more willing to part with" in order to determine our winner.
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With those 2 properties being: 1. 'Easier access to personal/business loans/credit' OR 2. 'Not dealing with programmed inflation (which can be trusted because it's programmed & not at the will of a politician), and subsequent loss of Purchasing Power'
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Replying to @ColtonRobtoy @TFTC21
I think credit markets will emerge on top of Bitcoin as well, though I agree, early on they will be more expensive than status quo systems. But yeah, I definitely think fixed-supply and it being hard to change is what makes Bitcoin valuable.
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I don’t think it even matters whether inflation can trusted or not. (1) That system will certainly be changeable by the state and (2) The market doesn’t want inflation at all
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Replying to @MustStopMurad @TFTC21
Colton Robtoy Retweeted Colton Robtoy
I've summed up my Gold v Fiat argument in this tweet: https://twitter.com/ColtonRobtoy/status/1021845034214338560 … I feel most confident that it actually comes down to easy/hard access to cheap loans. In the 'cheap loans' case, inflation is the byproduct. In the 'expensive loans' case, lower SoL is the byproduct.
Colton Robtoy added,
Colton Robtoy @ColtonRobtoyReplying to @MustStopMurad @TFTC21Agree. My argument above is more for the Gold vs. Paper Money use-case, not Gold vs. Fiat use-case. Maybe the only thing that actually matters for Gold v Fiat is choosing between: Easy (& cheap) personal/business loans/credit. OR Hard (& expensive) personal/business loans/credit1 reply 0 retweets 1 like -
I think that's pretty good. And it makes sense in my brain. What do you think? You can never get cheaper loans than banks creating that 'Checkbook money' from their 10% Reserve Ratio requirements.
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Replying to @ColtonRobtoy @TFTC21
I agree. But I think without government loans wouldn’t be as artificially cheap as they are today. If Bitcoin succeeds, it essentially defunds the state.
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I’m also not sure if higher interest rates are neccessarily bad for the quality of life. It essentially comes down to time-preference; borrow now to pay off debts later, or work harder today, investing for the longer-term etc. Strongly recommend “The Bitcoin Standard” (Saifedean)
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It’s similar to The Marshmellow Experiment that I’m sure you’re familiar with; sometimes debt is actually bad, and prolonged discipline and effort without indebtedness is better
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The benefit in this case of “true”, higher interest rates as opposed to cheaper ones is that no one can now dilute your currency.
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Replying to @MustStopMurad @TFTC21
I haven't heard of it. It makes sense in my brain with you explaining it to me. Thank you.
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