Hello, I have bitcoin since 2017 and follow all the various discussions about the future of bitcoin and how it may become the monetary standard one day.
One thing I can't really see an answer to is how credit creation would work on a Bitcoin standard (or gold standard for that matter) as the system would be fully reserved and not fractionally reserved as the current standard is...
Wouldn't this mean there would be a limited amount of credit available to lend out then? Which could then hinder economic/growth expansion? Would be great to get an explanation on this, thank you
Making Bitcoin the default in the credit system is reckless because the value of Bitcoin is quite volatile and when it is entered into the credit system it will cause problems for both borrowers and lenders. Moreover, the supply of Bitcoin is very limited and it will not be able to fully serve its customers.