the main downside of an artificially suppressed interest rate is that it creates the illusion of a tailwind in headwind conditions unprofitable ventures can be started or maintained b/c of incorrect calculations
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so over time the economic system fills with "zombie" activities that destroy more value than they create as the effects of inflation start manifesting (even though in the short term right after the moment of borrowing it was profitable for a bit)
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the longer these ventures go on the more vitality is drained from the system b/c it gets more and more difficult to distinguish "bullshit" activity from actually useful activityhttps://en.wikipedia.org/wiki/Backyard_furnace …
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thus artificially low interest rates are similar to babying someone with a victim mentality. giving them an A for D work via grade inflation over time the individual becomes more and more useless relative to the ones that get slapped for whining
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this is not to say that slapping everyone is a silver bullet. there *are* victims and there is a certain beauty in taking care of the disabled / handicapped / autistic / etc.. but the frosting goes over the cake not the other way aroundhttps://twitter.com/a_yawning_cat/status/1359955811619860481 …
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with grade inflation. the student who masters 100% of the material and gets an A is indistinguishable from one who gets 20% of the material and gets an A as well with currency inflation the ceo with 100M in funding is indistinguishable from the idiot with 100M
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so bitcoin, as an "anti inflation" asset (assuming it is globally adopted) fixes a similar problem with grade inflation. it forcibly (through math) prevents the coddling that inflates away the difference between superior/inferior domain skills
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HOWEVER there is a danger here in that it is effective at this discernment only in domains that can CAPTURE excess value into economic tokens it doesn't fix the problem with ONLY monetizable skills being valued by the world
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e.g. it would hypothetically reduce the number of male chauvinist toxic founders who don't actually know how to deploy capital and just bully their way to the top but it wouldn't fix the issue of support roles being culturally undervalued
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so the attitude towards bitcoin of "it's just more money bullshit" is correct. it doesn't solve the fundamental problem of money being ineffective at tokenizing patterns of value that cannot be tokenized
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what's worse is that its philosophy of "slap the babies" also feels antagonistic to the desire to get the support roles properly compensated. it feels "mean" when the goal is more "nice"
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with violence sometimes it feels like one should take up the mantle of god and impose a moral structure and FORCE everyone to be nice but nature knows that fighting is often the only way to communicate the winners must be recognizedhttps://twitter.com/a_yawning_cat/status/1401893823735689216 …
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like... if a different colored animal in your class gets an A at math vs your C is it really that hard to say "oh you are the winner in this domain" y u gotta go "my C is JUST as good as your A. also, i'm more moral"
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End of conversation
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