Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Lending factor affects a lot in growing the economy of the country.
For example we can see that not much developed nations have comparatively less banks as compared to highly developed countries. (I won't mention the countries over here)
Also taking loans from the banks make the country get more developed even financially.
If fiat money is completely gone from the world than i think that cryptos would too be used to lend and borrow. That time the demand for cryptocurrencies would surely hike a lot which will lead for a huge price growth!