Yeah, typically in recessions credit dries up as lenders become more risk averse. But I think if credit is needed and there are productive uses for it’ll be extended.
Under a Bitcoin standard I think cost of capital would be waaaay higher. Which in the end markets would set the rate but I think if cost of capital was higher then it would flush out a ton of the crap from economies and leave only the best, most productive borrowers as legitimate candidates for creditors. I think it would be a huge net positive for society.
BTC_P2P /
npub1an…fze63
2023-06-15 18:24:07
in reply to nevent1q…n0e4
Author Public Key
npub1an6xs9jt6apmw45rmvu8pnspewdp6juwcgp76fk72ruky4dmcadqwfze63Published at
2023-06-15 18:24:07Event JSON
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"content": "Yeah, typically in recessions credit dries up as lenders become more risk averse. But I think if credit is needed and there are productive uses for it’ll be extended. \n\nUnder a Bitcoin standard I think cost of capital would be waaaay higher. Which in the end markets would set the rate but I think if cost of capital was higher then it would flush out a ton of the crap from economies and leave only the best, most productive borrowers as legitimate candidates for creditors. I think it would be a huge net positive for society.",
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