True. I shouldn’t have said duration mismatch is the *only* way because Nik is right, collecting Sats fees for lightning liquidity is a yield and operates within the system without violating 21M.

Saylor’s discussing it from a capital perspective though. Borrowing money for a car or a house.

So say Bitcoin hits $13M per Saylor’s projection and a teenager wants to borrow $100k for a used car (inflation is a bitch) - that’s 769,231 Sats for a car.

In this world tx fees are going to be WAY higher. Realistically we’re heading to 500-1000 Sats per vbyte - that’s another 6.5%-13% cost on capital in tx fees.

People aren’t going to pay that kind of fee + interest to do this on the base layer to buy a used car..

Lightning or future L2s are the only feasible way to transact $100k at $13M Bitcoin. We could tack on additional lightning fees to represent the yield but then its not contained within Bitcoin any more, the car and the loan are outside of Bitcoin’s property rights enforcement which is not a knock on Nik’s idea, merely pointing out this doesn’t solve the yield either.

So if we can’t get around the 21M - where does the yield come from?.. 

WHERE DOES THE YIELD COME FROM IN A FIXED SUPPLY ASSET THAT IS CONSTANTLY APPRECIATING IN VALUE MICHAEL!