"The purpose of Bitcoin is to definancialize the world, not re financialize it. And so when I heard Strategy Executive Chairman Michael Saylor say at the Bitcoin Treasuries Unconference yesterday that he wants to see $200 trillion in credit built on top of bitcoin once it hits a $100 trillion market cap, I felt uneasy. Then, when I heard Coinbase CEO Brian Armstrong send a similar message this morning, I started to feel like we're very much losing the plot."
"What Satoshi seemed to have in mind instead was "Here's a new form of money that preserves value over time so that people don't have to rely on financial products as much. I don't know whether or not we'll ever live in a fully hyperbitcoinized future where no other forms of money exist. But I do imagine that the $100 to $200 trillion in debt that both Saylor and Armstrong are envisioning is constituted of other currencies,"
Bitcoin's purpose is to definancialize the world rather than enable large-scale credit creation built on top of it. Proposals to create hundreds of trillions in credit secured by bitcoin risk turning bitcoin into digital capital instead of money. Bitcoin emerged after the 2007–09 financial crisis as a response to excessive leverage and over-financialization. Satoshi's design appears aimed at preserving value over time to reduce reliance on complex financial products. A preferable outcome emphasizes local bitcoin circular economies that use bitcoin as money and reduce dependence on traditional credit-based financial systems.
Read at Bitcoin Magazine
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