/biz/ - Business & Finance

>>17795920
>Twenty minutes.

>No timestamps.

>sOmE oF tHeSe will SuRpRiSe YoU

Fuck that

>>8260435
Just imagine if you kys yourself anon and then you watch from heaven as your coin moons.

Fug could have got 6 more instead of 5 if I just waited a little longer to buy.

So yeah the economic system would collapse.

You see, debt is an asset that backs a currency. Say your uncle wants to start a restaurant. He goes to the bank and gets a loan, injecting 400k into the money supply. This money is used by the people he pays for buying things, etc.

Trouble is, a tremendous amount of money in circulation is created this way, and the interest that it generates is what backs the value of the currency. People make 'economic' decisions based on this, since they know there is risk involved in spending it and they have to give it back eventually. Also, the bank can't just print more money without recourse (such as it losing value and inflating rapidly).

So in this scenario, lets say jimbob doesn't need to pay the bank anymore. Cool, jimbob wins the lottery and has 400k of free money. This is good for Jim. This is, however, bad for the economy. There is virtually no risk associated with owning this money, and most people will spend it since they don't have to pay it back.

Such a huge influx of money into the circulation will raise the price of goods and make the currency of the country worthless. The supply/demand curve will shift, and the equilibrium prices will rise. Aka, it will cost $1,000 to buy a loaf of bread.