Nick Szabo  🔑

Idiotic ideological nonsense. There's no such thing as unsecured credit with no credit risk.

it is possible a government would fail to repay tokens it can produce at will, but not very likely, which is why sovereign debt in own-currency is general described as credit-risk-free. whether the tokens will have value is a different question, but it is quite rate (though not

quite RARE (though not entirely unheard of) for governments to default on formal debt obligations if their own scrip.

Inflation is a credit risk, and plenty (probably most) have defaulted in that manner. Using the single most powerful country in the world provides a very skewed statistic.

now we are just arguing over definitions. by my (conventional) definition (i wrote the slide to which you object), inflation is NOT credit risk, it is valuation risk. if you want to include valuation risk in your definition of credit risk, ok, but you are not disputing the claim.

You are at this point just confusing your readers with bad propaganda by claiming that a phenomenon roughly under the control of the debtor that can arbitrarily reduce the value of the debt is not a credit risk.