Author Topic: :-> Bitcoin are helping to reduce global debt. :->  (Read 3 times)

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:-> Bitcoin are helping to reduce global debt. :->
« on: February 12, 2019, 06:57:24 AM »
Ok, let's forget for one moment that Banks are also getting money from thin air, when Reserve Banks are printing money. Let's just concentrate on the millions of deposits that are deposited into Banks on a daily basis and that most of this money is borrowed to other people with interest. 

This money is channelled to loans <Short-term and Long-term> and people pay interest on those loans, resulting in higher debt.

So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.    

This is why we always tell people not to buy bitcoins with credit cards or loans, because you are borrowing money from Banks to invest in Bitcoin and that increase debt levels again.  

Hoarding Bitcoin also stimulate a saving habit and that helps to counter increasing debt levels.