The Bitcoin Standard
Published in 2018
Saifedean Ammous
Saifedean Ammous (b. 1980).
Interest & Interest Rates
Interest is the cost of borrowing money or the reward for saving money.
If you borrow money (ex. loan), it's the charge in addition to the amount borrowed for borrowing it.
If you save money (ex. savings account), it's the money you earn for letting a bank use it.
The Federal Reserve
The central bank, such as the U.S. Federal Reserve, sets a base interest rate, which is the rate banks pay to borrow money from the central bank. These banks use the base interest rate to set their own interest rates.
If you borrow money (ex. loan), it's the charge in addition to the amount borrowed for borrowing it.
If you save money (ex. savings account), it's the money you earn for letting a bank use it.
The Federal Reserve
The central bank, such as the U.S. Federal Reserve, sets a base interest rate, which is the rate banks pay to borrow money from the central bank. These banks use the base interest rate to set their own interest rates.
Bitcoin
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