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
Bitcoin Standard would be decentralized p2p (peer to peer) lending. The standard is already in used by several crypto lending platforms
It should also be possible for multiple lenders to pool BitCoins together and lend to big businesses with the p2p method...
And probably with gentleman's agreement that borrowers will only be paying the exact amount that's borrowed in fiat equivalent (with/without interest) even if price fluctuate up or down.