vipier on Nostr: Great point. Even in our fiat debt based world, we routinely approach the limits of ...

Great point. Even in our fiat debt based world, we routinely approach the limits of hyperbolic credit creation, and have to choose between widespread nominal debt default, or hidden default via debasement.

So would a bitcoin-only world mean a world without loans, and thus without any leverage? Guess so. But there's just no way that humans won't figure out a way to loan and borrow, in all cases -- the incentives are too massive.

Am I talking myself into acknowledging the necessity of fiat? Haha.

I suppose the only realistic assumption is that we'll have a dual fiat/bitcoin system, always. I guess, just like we have now. Except with bitcoin playing a greater and greater role. Perhaps there's a "balance" somewhere between fiat-dominance and bitcoin-only.