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Interest is normally paid on a loan, from the borrower to the lender, the implication being that while the borrower has the money, the lender doesnt have it and therefore needs to be compensated for their loss of use of that capital during the period of the loan.
The interest paid to Dash reserve supply holders is coming out of the coin inflation, not from a borrowers' "rent" payments. Coin inflation on its own has the effect of devaluing the currency, so strictly speaking, in the absence of any accrual in valuation against goods and services or other currencies, that interest is only partially offseting the devaluation caused by new supply.
Thats the technical foul, behind my comparison.
The reason I qualified it as sort of is because:
a) in the fiat world there is a kind of scammy situation where new supply has to be created to pay the interest anyway
b) in Dash, the reserve supply has to be bought from the currency portion of the supply for anyone entering, so this in itself will notionally buoy the valuation and make the interest payments actually net positive (ideally that is - not guaranteed of course)
I would have given it if anyone had got the bit about the interest coming out of the supply inflation as opposed to out of existing supply paid from a borrower
Great discussion, just missed it.
About a). What is even crazier is that most fiat money is created from loans. And more loans need to be created over and over for the system to keep going and pay back the first loans. So why are we at 0% inflation right now? Because we are at the end, increase the interest, no one can pay the debt.
I would have said you can't compare fiat that is debt based to DASH that is credit based. Debt based systems always collapse/devalue.
