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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Sure you are taught to think 20% is not sustainable because you were use to world where growth is limited. What happens if Hive grows at 50% annually for 2 decades? Do not think this is possible? What is the growth of the Interet, users, nodes, server space, etc? Look at the growth of stock transactions due to automation.
People's overall lack if understand of how money impacts the economy is where they go wrong.
How is growth generated? Where does it come from? How is it paid for?
It comes from the innvoation of people. Yet do they not require payment? Arent materials for plants, prototypes, and computers all costing money? What happens if you get an influx of money in your company, could you grow it more? Why do people not think this is the case with an economy as a whole?
If you want Hive to grow, the money needs to be there for growth. Money is not wealth, it is a tool for wealth. Wealth comes from business, commerce, and all the innovation tied to it.
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