[–] Rellik88 0 points 1 point 1 point (+1|-0) ago
Currency loaned for interest immediately debases the borrowed currency due to the interest being magically created into the same system.
The interest has to be paid in real money. That loan they gave is what's fake. They created the principle out of thin air, which real money has to be paid for interest.
the value of bitcoin is irrelevant at this point in time. you are in the "distribution period" - in essence, bitcoin is like the Euro prior to when it actually went live (2002 IIRC).
[–] daskapitalist ago
What if I dont want equity?
How does interest create new currency? Imagine if the loan didn't involve any money, just labor: I'll do this work for you over the next week if you do the same in return a year from now, plus an extra day of work. No money at all, but still interest.
Interest is just recognition that things now are often more valuable than things in the future, because of the benefits they provide over time.
[–] 0100100-100110 ago
I lived in the middle east for a few years. Interest rates didn't exist. Instead it was tied into the price of the object. Paying in full have the cheapest price, the longer you wanted to make payments the more expensive the item became.
[–] whyamIevenhere 1 point 0 points 1 point (+1|-1) ago (edited ago)
Didn't realize this site was all Muslims and commies. Holy shit, you're all economic retards. Lost a lot of respect for voat over the last two days.
So what happens if you make a loan and no product is ever produced? What if it's to start a plumbing business?
[–] FreeSpeechForever 0 points 1 point 1 point (+1|-0) ago
The only caveat is that time has value. Capital today is worth more than capital tomorrow, but the current amount of interest on loans far exceeds these measures.