The statement: “Digital credit will ensure
#BTC never goes to $1M.” Doesn't logically follow.
In fact, there's an argument for the opposite.
If
#Bitcoin becomes high-quality collateral, institutions could potentially create more financial products around each BTC.
Think about
#Gold.
The existence of gold-backed credit didn't prevent
#Gold from appreciating dramatically over long periods.
The same basic principle could apply to
#Bitcoin:
BTC becomes the collateral → financial system builds credit on top → demand for BTC collateral increases.
That could actually increase the monetary premium placed on
#BTC.
And there's a much more interesting question behind it:
If
#Bitcoin becomes the world's premier digital collateral, does the creation of
#Bitcoin credit actually make $1M
#Bitcoin MORE likely rather than less likely?
IMO more Bitcoiners should spend more time on understanding that if "digital credit" is developed it will ensure BTC never goes to $1m
That may even be the point of "digital credit."
But Bitcoiners would be well-served to study "credit gold" that began in London in mid-80s