No, it is true. To describe a currency as 'debt-free' means that it is not created through the process of creating new debt. The way modern currencies like the

No, it is true. To describe a currency as 'debt-free' means that it is not created through the process of creating new debt. The way modern currencies like the dollar are emitted is through the generation of new debt (government bonds are government debt, and banks create new currency when they 'loan' money). The negative consequences of not paying what you borrow (forclosure, etc.) are ultimately what backs debt-based currencies. Graeber argues (and I agree) that it is therefore the threat of violence from the state what gives value to currency in the modern era. Bitcoin is fundamentally different because new currency is created through mining. Yes, you could create a secondary market on top of Bitcoin that handles loans, but not new Bitcoins, therefore it is debt- free currency. When Nixon decided to decouple the dollar from gold in the seventies, what he did was effectively to move from a debt-free currency to a debt based currency. The move had huge implications in shaping the world until today, because it meant that the US became free to print dollars endlessly. The external market for dollars was solid because of the world reserve status, enforced through the US military. In this way the US could print away AND keep internal inflation very low in relation to the amount of circulating currency. Breaking this cycle, which is what feeds the US empire, is why I think Bitcoin will in the end provide a great service to mankind.