BTC_P2P on Nostr: Yeah, typically in recessions credit dries up as lenders become more risk averse. But ...
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.
Published at
2023-06-15 18:24:07Event JSON
{
"id": "d8fa79aa318e3900d7548403703d492b69468da09db6a1d214f5b7f39e727b14",
"pubkey": "ecf468164bd743b75683db3870ce01cb9a1d4b8ec203ed26de50f96255bbc75a",
"created_at": 1686846247,
"kind": 1,
"tags": [
[
"e",
"e70d17e1f4a467aef3aa58eab640ac75eb255e7176041d6cdf8fe4fbf2e46a1d"
],
[
"e",
"6896640f34f7089bb0e7fa77eca6c3d1c8e5b79d3a7173de60a79adc23f3716b"
],
[
"p",
"49e54666a7e1a97af9fe7e8ab0533f1ab83cd37f55bdd4a888e2da87777a78e7"
]
],
"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.",
"sig": "8b5bb0d754b41f3ceb61dee89bb2ca83afeacb8170416dbf8a2980e2483f9813d218a319626da5414a1144d1e66c17b699aee8d75fec20368bd9b606fae1186e"
}