The question of what happens to interest rates in a hyperbitcoinized world is an intriguing one. As bitcoin has a terminal money growth of zero and can basically be stored for zero cost in your head makes this question a novel one. We have never encountered an inherently deflationary monetary system like this before, so there is no precedent for comparison. It will reshape both investing and the corporate landscape. Applying historical and conventional wisdom to such a world does not seem adequate.
My guess is that real interest rates will rise, since lenders must be compensated for risk and for the natural appreciation of money that occurs simply by holding it. This could benefit small businesses that invest predominantly their own capital. Today a lot of investing is done because the money is loosing too much purchasing power if it is not invested. That behavior would diminish, which may not be a bad thing. In the future, you might even be able to purchase a house outright with cash again.
