Credit system on a Bitcoin standard

I often find myself wondering about credit systems on a Bitcoin, true sound money standard. The below is a bit of a brain dump with the hope of understanding the thoughts of others on this topic. Now to be clear, this is not something that concerns me personally, because I personally wouldn’t feel the need to take credit for something that I can actually save up for, knowing the purchasing power of my savings is going to be preserved, probably even rise! And I would hope that most people would feel this way too, once they realise their purchasing power isn’t being stolen from them. However, I’m not naive to the reality that the world is addicted to credit, and there will be demand for it, at least initially. So, how do you all feel about this? My concern for the masses is that, on a sound money system, taking credit recklessly is going to get you burned. Unless the credit you’re taking is going to productive use, to generate greater future returns, it will wipe you out, because you’re going to have to pay back more in real value. Granted, there should be less need to take credit across the board, even for homes, because as they stop being used as a store of value out of necessity, they fall back to their true utility value, and you can just save up for one. If they’re still to overpriced, lower demand will force prices down further. But the reality is there will be demand for it, at least initially, and financial institutions will still be desperate to hold onto that business. The way I look at it right now is, it’ll be an adjustment, and unfortunately a lot of people will learn the hard way that taking credit without due consideration, or without the intention of putting it to productive use, will cause them harm. And really that’s how it should be, if your taking credit it should be because the anticipated productivity increases are expected to provide monetary benefits that would allow you to pay off the credit + provide an ongoing increase in income. I guess like all things, people will do what they do, get burned, and learn over time submitted by /u/Ok_Score9113 [link] [comments]

Apr 25, 2025 - 08:12

I often find myself wondering about credit systems on a Bitcoin, true sound money standard.

The below is a bit of a brain dump with the hope of understanding the thoughts of others on this topic.

Now to be clear, this is not something that concerns me personally, because I personally wouldn’t feel the need to take credit for something that I can actually save up for, knowing the purchasing power of my savings is going to be preserved, probably even rise!

And I would hope that most people would feel this way too, once they realise their purchasing power isn’t being stolen from them. However, I’m not naive to the reality that the world is addicted to credit, and there will be demand for it, at least initially. So, how do you all feel about this?

My concern for the masses is that, on a sound money system, taking credit recklessly is going to get you burned. Unless the credit you’re taking is going to productive use, to generate greater future returns, it will wipe you out, because you’re going to have to pay back more in real value.

Granted, there should be less need to take credit across the board, even for homes, because as they stop being used as a store of value out of necessity, they fall back to their true utility value, and you can just save up for one. If they’re still to overpriced, lower demand will force prices down further.

But the reality is there will be demand for it, at least initially, and financial institutions will still be desperate to hold onto that business. The way I look at it right now is, it’ll be an adjustment, and unfortunately a lot of people will learn the hard way that taking credit without due consideration, or without the intention of putting it to productive use, will cause them harm. And really that’s how it should be, if your taking credit it should be because the anticipated productivity increases are expected to provide monetary benefits that would allow you to pay off the credit + provide an ongoing increase in income.

I guess like all things, people will do what they do, get burned, and learn over time

submitted by /u/Ok_Score9113
[link] [comments]