The current credit system is a creation of the past one or two decades and did not exist as it does now several decades ago. One could argue that we have had more incidences of recession during the early modern and modern economic era than we had in the times without an efficient credit system. Could the dependency of businesses on credit and countries running practically on debt be a creation of the current financial system?
Wouldn't this mean there would be a limited amount of credit available to lend out then?
Yes, there would be. Bitcoin has a limited supply and cannot service the current credit system.
But we are considering a situation where Bitcoin is a world currency and not an alternative. It can function as a reserve currency along with its other utilities, but not as the standard financial currency.
- Jay -