DugandRupe on Nostr: Gm nostriches, Fully accept that I’m left curving this, but bit bonds could be the ...

Gm nostriches,

Fully accept that I’m left curving this, but bit bonds could be the solution but also a Pandora’s box 📦, just not in the way people seem to be discussing. Issuing bonds with interest is inflationary, money supply increases to pay the coupon (they increase rates to control inflation, but the act itself is inflationary). If interest on bit bonds is zero, this helps reduce inflation.

Does this mean that if bit bonds take off, while they could help solve the nation state debt crisis, reducing interest payments, could there be unintended consequences, where an inflationary fiat economy isn’t being juiced by bond holders making and spending newly created money? Or could this lead to the opposite, when governments go wild with borrowing, because bit bonds allow them to take on debt, without the cost of repayments?

#catstr looking for a space on my lap to try and fill some gaps in my 89iq brain. Peace ☮️