Why Nostr? What is Njump?
2025-03-16 22:53:48

MustHaveMoreSats on Nostr: How Bitcoin Changes the Game Think of Bitcoin like a strict referee in a game of ...

How Bitcoin Changes the Game

Think of Bitcoin like a strict referee in a game of money:

For Regular Folks: If you save Bitcoin, it could buy more stuff later as prices drop—like saving $100 today and finding it buys $120 worth of groceries in five years. No bank can print more to water it down. This rewards people who save and work hard, not just the rich who borrow.

For Rich Borrowers: The wealthy can’t play the inflation game anymore. If they borrow 100 Bitcoin to buy a building, they owe 100 Bitcoin back—no matter what. If deflation kicks in and that building’s price in Bitcoin drops from 100 to 80, they’re stuck—they can’t sell it to pay off the loan easily. Plus, their rent income in Bitcoin might shrink too. The debt doesn’t get “cheaper” like it does with dollars.

Real Example: Imagine a car costs 1 Bitcoin today. Tech improves, and in 10 years, it’s 0.5 Bitcoin because making cars got cheaper. Your 1 Bitcoin savings now buys two cars instead of one. Meanwhile, a rich guy who borrowed 1 Bitcoin to buy a car lot owes the full 1 Bitcoin back—no inflation to lighten the load—and his cars might only sell for 0.5 Bitcoin each now. He’s not laughing to the bank anymore.

Technology should make things cheaper in a free market, but inflation helps rich borrowers by shrinking their debts while raising asset values; Bitcoin fixes this with a fixed supply, letting prices drop as tech improves, so savers gain and borrowers lose their edge.
Author Public Key
npub1907l0wgacr0aqzlvuxyy5vjmhj58ynml5d7dj5006t9sjq6sq89qauamwr