Author: ZmnSCPxj 2022-05-04 04:19:25
Published on: 2022-05-04T04:19:25+00:00
The discussion between two individuals, E and ZmnSCPxj, revolves around the concept of lending. The lender provides the principal amount to the borrower who pays interest in return for using it. The borrower uses the principal amount to produce goods and earn profit which is then shared as interest with the lender. The borrowed principal is traded among multiple people until maturity when the coin is returned to the lender. However, ZmnSCPxyj argues that in a different scenario where the principal is used as an advertisement, the bitcoins are not being used as money. The use of fidelity bond to back a trust assertion makes it different from the original scenario where funds are transferred. Therefore, he gives a new analogy of borrowing a piece of gold, smelting it down to make an advertisement, and returning the same piece of gold with an interest earned from the business. In conclusion, ZmnSCPxj's analysis fails in this scenario.
Updated on: 2023-06-15T20:10:20.857967+00:00