Don't bother reading.
Most of the article talks about the magic of compounded interest, Yawn! The last two paragraphs talk about Bitcoin.
The title of the article should have been ,"A Brief History of Interest. Oh, and Bitcoin, too."
Topic: [2016-02-15] Why interest rates are a powerful tool with Bitcoin (Read 331 times)
February 15, 2016, 08:40:33 PM
Nominal interest rates are a function of the risk free rate, risk premium and inflation.
With a deflationary currency like bitcoin, you can knock of the inflation bit.
The risk premium of course depends on the borrower - which is why you have obscene interest rates in the lending section.
I am curious about the risk free rate - would it be the same in USD and in BTC?
With a deflationary currency like bitcoin, you can knock of the inflation bit.
The risk premium of course depends on the borrower - which is why you have obscene interest rates in the lending section.
I am curious about the risk free rate - would it be the same in USD and in BTC?
February 15, 2016, 01:30:02 PM
Why interest rates are a powerful tool with Bitcoin
Throughout the various cultures of the world, the primary difference between the rich and the poor, for much of our history up to and including today, has come down to who understands how to use their money to work for them. The least affluent class across cultures are known for spending their entire earnings each pay period on consumables and entertainment, then scraping by until more income is earned.
https://medium.com/@Magnr/why-interest-rates-a-powerful-tool-with-bitcoin-745352ebff99#.u5s56fklo
Throughout the various cultures of the world, the primary difference between the rich and the poor, for much of our history up to and including today, has come down to who understands how to use their money to work for them. The least affluent class across cultures are known for spending their entire earnings each pay period on consumables and entertainment, then scraping by until more income is earned.
https://medium.com/@Magnr/why-interest-rates-a-powerful-tool-with-bitcoin-745352ebff99#.u5s56fklo
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