In a world where Bitcoin is the only currency - why would anyone in their right mind lend any of it to anyone? It seems in the final analysis impossible to take a loan with a positive interest in Bitcoin since the supply is capped - it just can't work for everyone all the time. Is it somehow supposed to be mitigated by defaults? How would capital allocation on just Bitcoin work?
In a world where Bitcoin is the only currency - why would anyone in their right mind lend any of it to anyone? It seems in the final analysis impossible to take a loan with a positive interest in Bitcoin since the supply is capped - it just can't work for everyone all the time. Is it somehow supposed to be mitigated by defaults? How would capital allocation on just Bitcoin work?