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It creates risk and slows things down because you can’t trust your counterparties

• Kbelicius 4y ago
  So it is transferring value just somewhat different?
  • garydevenay 4y ago
    Not exactly. Credit creation creates an asset and a liability. The creation of credit facilitates the ability to create liabilities in excess of the underlying asset (e.g fractional reserve banking). By introducing the ability to transfer a scarce asset globally you resolve the requirement for credit, as no one ever needs to redeem. Credit is a hack, Bitcoin is the fix.
    • Kbelicius 4y ago
      That still sounds like you are transferring value just in different ways.