Yesterday i was discussing with friends about Bitcoin and i got to a point, where i need your help.
I was always claiming, that with Bitcoins there is no interest rate possible, since the amount of coins can t be influenced by an evil power like banks.
And no inflation means no interest rates are possible.
And since inflation and interest rates are the tools, to make the world go insane by a constant demand for economy growth i am sure we would live much better without them.
But now one of my friends said, that with Bitcoins its still possible to have a system of banks, that own a lot of Bitcoins and lend them to people for interest rates.
Let me give you an example:
There are thousand Bitcoins available. They all belong to the bank, and they lend 500 to a person for 10% of interest. Now the person has to give 550 Bitcoins back. But since the bank still has 500 BTC and he has the other 500 BTC those 50 BTC don t exist. He can t give 50BTC back and without pressing money they will never be there.
But what if he says to the bank, that he can pay the 50 BTC in another trading good like gold or cows or giving the bank owner a massage (service).
Wouldn t this still be as evil as the system we have right now?