By contrast, currencies that are based on the value of debt, like the U.S. Dollar, are inherently inflationary. This is because, in a debt based monetary system, there must always be more money owed than is in circulation. If there were no net debt there would be no money. A currency such as this must be continually inflated in order to remain operational.
Why? What would happen if they just stopped printing money?
Deflation is the enemy to this type of monetary system
Why? What is the difference from Bitcoin or gold?
The problem with this scenario is that it depends on exponential growth forever, which is not possible with finite resources.
Maybe not forever but a quite long time. Keep configuring the same stuff in ever more desirable ways. A lightbulb is thousands of times more useful and valuable than the rocks it is made of. A GPS navigator made from the same matter is hundreds of times more useful and valuable than the lightbulb.
This is the way Bitcoin works. Since there is a limited supply, and it can not be inflated by 'fiat' it will limit the rate of growth of it's economy to the rate at which new value can be discovered.
The rate of growth is always limited to the rate at which new value can be discovered no matter what.
