335 sats \ 1 reply \ @nerd2ninja 16 Nov 2022 \ on: At this point, It's DeFi on Bitcoin or bust. bitcoin
Debt leads to malinvestments which plant the seeds for the future destruction of the system only propped up in the traditional world by bailouts.
Austrian business cycle theory and understandings of credit expansion should shy you away from advocating for this, but you want to be stubborn, then I suppose you can demonstrate the importance of the pain of consequences to learn that lesson instead.
I see both sides.
A future where everything is handled by something like the Bitcoin network and there isn't a need for a credit/debit system makes sense.
On the flip side, From Tycho he mentioned 2% of the worlds loans are overcollaterized. The rest are overwhelmingly undercollaterized.
There's something about the human condition that doesn't do well with long time horizons and seeks the benefits of leverage/"capital efficiency".
The most likely future likes somewhere in the middle.
Us Bitcoiner holders may never sell our bitcoin, just increasing use them as collateral when needed.
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