RE: Hive Needs A Permanent HBD Vault

avatar of @dagger212
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1 min read

This is a hard one for me to wrap my brain around. We've all been programmed over the years to think of debt as bad. We've also been programmed to think 20% is an almost absurd return, especially on something stable. It's hard for me to visualize how a permanent 20% would be sustainable down the road. Especially once it grows to epic proportions. At some point, wouldn't there need to be a way to "contract" the money supply? Like I said, I don't have a good enough understanding of economics to figure out the answer to this myself.

Just thinking aloud here....would a 10 year lock with a permanent burn of the principle at the end be worth considering? So you lock in say $1M, get 25% interest a year (that's $2.5M total interest without any compounding), and then the original $1M gets burned. I don't know. It just seems like eventually the "money supply" will get too big at which point it will be difficult, if not impossible, to hold the peg.

Like I said, I'm pretty limited in my understanding of how money supply works. Can you tell me where I'm wrong?

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