Credit is and will remain crucial to our economy, but it always implies the possibility of default. Counterparty risk is an unavoidable part of credit, and makes it a less secure basis for a monetary system than a well-implemented and trust-minimized cryptocurrency.https://twitter.com/izakaminska/status/950820062927212545 …
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I can agree in good faith to make payments to x, but if/when economic or personal conditions change through no fault of my own to point i can't afford payments, the only thing I have left to pledge to avoid default is my own personal autonomy.
Good for you, but bad for the also human counterpart(ies) who had been counting on you, and an utterly insecure basis for a monetary system.
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THe monetary system is a reflection of human interactions and relations. These come part and parcel with credit and default risk. If you remove that feature from the money system, it can never act as a reliable abstracted system of real value allocation.
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A debt based currency is a flawed system leading to artificial credit booms and credit busts. If credit is taken from a currency with a fixed supply, it reduces heavily those credit cycles.
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there is no way to avoid risk since the future is unknown and the present is cashflow constrained. bitcoin (for eg) does little to overcome these fundamental realities so it is hard to see what you mean replace the present "utterly insecure" system with.
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are we really making the Merchant of Venice case here?
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Is debt really that insecure? Value of USD and other fiat currencies have been intrinsically linked to debt for past half-century. Global GDP has been growing pretty well under this monetary system.
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