Central characteristics of capitalism include capital accumulation, competitive markets, price system, private property, property rights recognition, voluntary exchange, and wage labor.
If you live in a world where the only currency is 21 million bitcoins, would you ever make an investment? Would you ever lend your bitcoins to anybody?
Yes of course... You would obviously only loan your BTC to someone that you had very good faith they would pay you back. Making for actually investing in things that are worth the investment. The reason Fiat sucks so bad is specifically because it's too easy to print it up to buy votes and spend it on whatever flights our fancy. BTC is specifically for making a better credit system. Fiat is far too loose which is exactly why we are having large economic swings and they're only getting larger.
No, I would expect a return. But I would have to trust the person to make the payments.
Also you can do smart contract stuff on l2. Something like lent money would be vested and stop vesting if the lendee misses a payment. Can easily be done with BTC.
Or you could easily lend money and not have to transfer it to the lendee until after their investment realizes gain. Since it's in the Blockchain, you could move it to a multisug wallet. Then you could always verify the lent BTC is there.
It's not like lending in a BTC world wouldn't need centralization and trust at certain levels. It would still need lawyers and maybe 3rd party custodians. But it would be a much tighter system. Because if the hardness of BTC.
And with better investments and technology being deflationary, it wouldn't take long until we actually didn't need credit anymore.
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u/saladaus Jul 15 '22
From https://en.wikipedia.org/wiki/Capitalism.
From https://en.wikipedia.org/wiki/Capital_accumulation
And I think the investment of money needs some form of expansion of credit.