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If I were to give someone a Bitcoin loan, what interest rate should I charge? The massive uncertainty of that question is enough to discourage any such activity. I wouldn't make a Bitcoin loan with a one-week period.

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That's exactly what I'm saying. If it's deflationary then it should be worth your while to give me a loan at 0% (assuming I am low default risk). The fact that we don't know where Bitcoin is going to be in one week means that we don't really believe it's deflationary.

"If it's deflationary then it should be worth your while to give me a loan at 0%"

Why? I can just hang on to it for the same return and no risk at all.

This is why BTC loans really don't make sense, to me. Positive interest rates are punitive if the value keeps rising, negative ones pointless.

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