leonwankum on Nostr: The improved lending systems in the West over the past centuries enabled market ...

The improved lending systems in the West over the past centuries enabled market actors to discover and realize the potential of their economic activity and generate additional productivity. Fiat money has distorted this system, as it has made assets used to store value and receive credit expensive and inaccessible. Both functions, store of value and collateral, are closely linked. Why would a bank, or anyone else, accept collateral that loses value over the long term?

Bitcoin has the potential to create a healthy credit market and expand it around the world. As an accessible digital store of value, bitcoi can create a financial system where owning collateral and using it for credit will be far more attainable than it is today. This can lead to greater productivity and efficiency in the global economy. Bitcoin's potential as collateral encompasses various debt-intensive sectors such as real estate development, finance, energy, manufacturing, and many others. Most industries rely on credit to fund their operations and growth.

With the expected further devaluation of fiat currencies due to nation states needing to produce additional currency units to cope with high borrowing costs, the creditworthiness of companies across all industries is becoming increasingly important.

In this context, bitcoin emerges as a valuable long-term collateral option to enhance creditworthiness and facilitate ongoing borrowing for construction, production or maintenance purposes across all industries. In subsequent discussions, I will explore specific strategies for using as collateral, particularly for #realestate development.