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Debt can absolutely be issued with Bitcoin. What's to stop someone from saying, here I'll give you 1 BTC today if you give it back to me tomorrow? The reason you've probably heard that debt cannot be issued in Bitcoin is because debt cannot be issued in a 'safe' way. In other words if I give someone 1 BTC today, I can't be sure that they will give it back to me tomorrow. But that's just the nature of debt and has nothing to do with Bitcoin.

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Sure, you can do that, but that’s not how the modern world works. And it can’t create enough debt.

For instance, if you borrow in USD,you generally have to put it somewhere (like a bank) who can loan it out again. How do you let two different people use a single bitcoin? You need to do that for Fractional-reserve banking.

I’d reference this as a longer example of what I’m talking about: http://thismatter.com/money/banking/money-supply-money-multi...

Because debt is fueled by interest, and Bitcoin is deflationary by design. So there's no interest to give loans in Bitcoin.

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