Recently I heard Giovanni Santostasi say on the WiM show that he has a hunch, #Bitcoin could actually prevent the USD from going into hyperinflation - however, he could not really explain why that is.
I though a bit about that and came up with the following reasoning. Individuals holding BTC, with increasing prices will be able to pay back USD loans they took out.
Sooner or later banks will refrain from giving out new loans, either because just holding BTC is creating more returns or because interest would have to get competitive with BTC returns in order for giving out new loans to pay off.
Or on the other hand, maybe every bank will realise that they can create even more loans to buy BTC.
How do you see the relationship of BTC to the USD hyperinflating?
csupnig / Christopher Supnig
npub1f6…pwj6j
2024-09-09 20:33:58
Author Public Key
npub1f6w5gsjq5etpet67e0g6ty3qqy0q7wvdyu6ck7cre64j4p40jclqapwj6jPublished at
2024-09-09 20:33:58Event JSON
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"content": "Recently I heard Giovanni Santostasi say on the WiM show that he has a hunch, #Bitcoin could actually prevent the USD from going into hyperinflation - however, he could not really explain why that is.\n\nI though a bit about that and came up with the following reasoning. Individuals holding BTC, with increasing prices will be able to pay back USD loans they took out.\n\nSooner or later banks will refrain from giving out new loans, either because just holding BTC is creating more returns or because interest would have to get competitive with BTC returns in order for giving out new loans to pay off. \n\nOr on the other hand, maybe every bank will realise that they can create even more loans to buy BTC.\n\nHow do you see the relationship of BTC to the USD hyperinflating?",
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