Please help me understand/explain to an economist friend of mine...
He argues that Bitcoins have no chance in global success because a this system be used to create credit.
Bitcoins cannot be used to leverage. --> You cannot use Bitcoins to create credit. ---> It can't replace existing credit already created by the current system.
For Bitcoins to be successful, it has to be able to replace the existing debt!
Please help me:
Where is he right/wrong?
His is, indeed, a very conservative pro-establishment Keynesian point of view.
If you are looking for arguments, look into the discussion for/against (a return to) the gold standard. The points will be almost identical, but there will be a lot more info.
One of the things he's wrong in is propounding the legitimacy of fractional reserve banking.