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
An answer to your question could be that together with bitcoin many other cryptocurrencies can be created and which can be useful for the purpose of creating a multiplier for credit: the multiplier will not be the reserve but the trust in the system and in the individual projects.