Quote from: Indamuck on October 13, 2018, 11:26:37 AM

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?

I think the price goes up because demand exceeds the supply of goods, this is an economic principle, but all can happen because there is an ease in paying, for example the credit system is always provided by the bank, so if the convenience is removed, then the purchase will reduced, this caused a decrease in demand, and resulted in an abundant supply of goods, and then we all knew that the abundant stock demand was a little, the price would also drop, something like this could happen if bitcoin became the world's single currency, because bitcoin does not provide credit services.

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