>I've also never read as clear an explanation of bit coin creating currency without creating debt. It's definitely given me something to think about.Yes, that is huge. Debt-backed currency means someone is profiting off the mere existence of the currency, typically the banking system and government and anyone who owns the government bonds backing the currency, but at the expense of everyone else who uses and 'saves' it (that's not really saving).
The given rationalization for that is that a depreciating currency strongly incentivizes people to spend it or invest it instead of hoarding it in their savings accounts, improving economic growth. That's also the argument against a deflationary currency like gold-backed or bitcoin - that the ultimate result is decreased economic activity and growth.
However, that's an argument that grew out of an earlier time, when the world was less connected and dynamic. I suspect that a deflationary currency is much less of problem in our modern world, where economic activity happens at the speed of light and electricity and almost the entire world is integrated into a common market and economy.
In that world there is already huge incentive to spend an invest, and while a deflationary currency would represent a significant change, I don't think economic activity would ground to a halt under a deflationary currenncy.
In fact, the problem we're now seeing in the US and Europe is the opposite - too much incentive for borrowing and spending, not enough incentive for capital formation, eg savings. Too much debt at every level of society, from individuals to sovereign governments. I can't help but wonder if a deflationary currency that appreciates in value over time instead of depreciates would provide a higher bar for spending and investment, and alter that dynamic in favor of savings (which also a form of investment, as banks use savings to make loans).
Instead of US government bonds being the risk-free rate of return, a deflationary currency would be. That alone would be a huge economic shift, and might limit governments' out-of-control spending simply by giving investors a stronger alternative to government bonds. If a deflationary currency appreciates by, say ~3% per year, then government bonds would have to match beat that to attract investors, forcing governments to borrow and spend with more discretion.
Anyway, yes it definitely is something to think about. It's also probably a pure thought experiment, I don't see governments giving up the risk free rate of return status for their bonds any time soon.