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BTC is still the adoption / speculation phase. As the market share increases, it should tend to stabilize. If Felix is saying that Grandma shouldn't take out
by RickHull 14y ago
BTC is still the adoption / speculation phase. As the market share increases, it should tend to stabilize. If Felix is saying that Grandma shouldn't take out a BTC loan, then I agree completely. But it might be a different story in a few years.
Also remember that there are two sides to currency volatility. If the USD/BTC rate is changing, it could indicate USD volatility.
- Nursie 14y agoIt's difficult because bitcoin has to keep deflating in the long run, and with deflationary currency loans are less attractive - every BTC is worth more tomorrow than today so they are harder to pay back and you can make money just by sitting on them.
- iSnow 14y agoWe are a long way from that - but ultimately this could result in a competition between BTC and $ where loaners would prefer BTC and debtors would rather take out loans in $. In the end this would result in a much higher interest rate for $-denominated loans and near-zero interest rate for BTC-loans.