Topic: Is Bitcoin a distributed store of value or line of credit? (Read 628 times)

The current deficit spending global economy is based upon hundreds of trillions of dollar in loans that can't possibly be repaid. The crackpipe used by the central banks is the size of the Alaskan Pipeline. All the meth shacks in SE Asia can't fill their needs.

This.

OP needs to put down the crack pipe.

Referring to it as a "line of credit" implies that the underlying value represents a loan, which is not factually accurate in any possible way.

I am your humble servant.

This might just be the way to solve the Worlds problem with this.

This also brings to mind the Economic System that exists in the End Days. It will fix all the economic problems of the World.

It will be called the Beast System…..

… And your name happens to have Beast in it.   

IT ALL MAKES SENSE NOW!!!

Enjoy 

Dude. Dude. Doooooooooooood. That just blew my mind.

How about BTC is a line of credit which also offers a distributed store of value?

It all depends on how you look at it. I prefer to think of it as a line of credit. I worked to acquire a secured line of credit by mining or trading for my bitcoins. That line of credit fluctuates with the confidence of the Bitcoin economy similar to the prime lending rates set by central banks. If trade away my bitcoins, they go to someone that also wants to increase their secured line of credit. If you buy your bitcoins when they are overvalued, you will go underwater on your bitcoin credit. If you buy your bitcoins when they are undervalued, you can flip them when they are again overvalued. One thing we've learned about credit over the last three decades, is that there is no end to it on a global scale as long as everyone plays along and inflates their currencies. The problem is that not everyone does this equally. This has led to a general distrust in international monetary policies and great instability in credit markets.

Rather than credit being created behind closed doors in smoke filled rooms, it can be created on a transparent ledger by global consensus. If governments look to Bitcoin as a line of credit that they can borrow from on a level playing field, global monetary policies can happily make adjustments to their local needs without affecting international trade dynamics.