The more I learn how banks actually create money, the more Bitcoin makes sense
I’ve been looking into how mortgages and bank lending really work (was trying to understand where my interest payments actually go). When you get a mortgage, the bank doesn’t lend you money it already has. It just creates it. Literally types it into existence. It’s new money that didn’t exist until you took out the loan. Then you spend 25–30 years repaying it with interest often tens or hundreds of thousands extra, all for money the bank didn’t even have before. That interest is their profit. They created the money. You repay it in full. With interest. And if you can’t pay? They take your house. It feels insane that this is how the system actually works and it’s just accepted as normal. Bitcoin is the exact opposite: • No one can just create it at will • It has a hard cap (21 million) • You actually own it • It runs on rules, not privilege There’s no central institution that gets to “print” Bitcoin and collect interest on it for decades. And no one can inflate it to bail themselves out. I see it as the only way out of a debt-based system that feels incredibly rigged. I’m still learning. Just wild to realise how deep the rabbit hole goes when you actually start asking where money comes from. submitted by /u/throwaway274837 [link] [comments]
I’ve been looking into how mortgages and bank lending really work (was trying to understand where my interest payments actually go).
When you get a mortgage, the bank doesn’t lend you money it already has. It just creates it. Literally types it into existence. It’s new money that didn’t exist until you took out the loan.
Then you spend 25–30 years repaying it with interest often tens or hundreds of thousands extra, all for money the bank didn’t even have before.
That interest is their profit. They created the money. You repay it in full. With interest. And if you can’t pay? They take your house.
It feels insane that this is how the system actually works and it’s just accepted as normal.
Bitcoin is the exact opposite: • No one can just create it at will • It has a hard cap (21 million) • You actually own it • It runs on rules, not privilege
There’s no central institution that gets to “print” Bitcoin and collect interest on it for decades. And no one can inflate it to bail themselves out.
I see it as the only way out of a debt-based system that feels incredibly rigged.
I’m still learning. Just wild to realise how deep the rabbit hole goes when you actually start asking where money comes from.
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