My pleb take on Saif and Saylor’s chat about yield on Bitcoin:
Yield comes from prices falling against #Bitcoin. Said in another way, your purchasing power increasing is the yield not the # of units you have. Money is just information.
Technology is deflationary and exponentially increasing with AI, robotics 3D printing autonomous driving etc and they are converging. Prices of goods and services are collapsing to their marginal cost of production (lines of code over time).
Over time people borrowing will have to return at least the rate of deflation plus risk. If the rate of deflation is currently -5% and increasing it will make less and less sense to loan money into the future especially if your hurdle rate as a bitcoiner far exceeds what you can get in traditional lending markets.
Risking your bitcoin which increases at say 50% per year to earn 5% doesn’t make much sense to me.
Jeff Booth (npub1s05…eyhe) ~agree?
McG
npub1eq…tk6lz
2024-09-18 15:28:02
Author Public Key
npub1eqhmw8cjh30uj0uefq8vylatzf46kxah0j3srmgqac47jepz2q8qxtk6lzPublished at
2024-09-18 15:28:02Event JSON
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"content": "My pleb take on Saif and Saylor’s chat about yield on Bitcoin:\n\nYield comes from prices falling against #Bitcoin. Said in another way, your purchasing power increasing is the yield not the # of units you have. Money is just information. \n\nTechnology is deflationary and exponentially increasing with AI, robotics 3D printing autonomous driving etc and they are converging. Prices of goods and services are collapsing to their marginal cost of production (lines of code over time).\n\nOver time people borrowing will have to return at least the rate of deflation plus risk. If the rate of deflation is currently -5% and increasing it will make less and less sense to loan money into the future especially if your hurdle rate as a bitcoiner far exceeds what you can get in traditional lending markets. \n\nRisking your bitcoin which increases at say 50% per year to earn 5% doesn’t make much sense to me. \n\nnostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe ~agree?",
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