Your first paragraph contains some very common but very wrong points about fiat currency.
1. standard banks (think commonwealth, NAB etc etc) do not print money, or are even able to create currency. That's entirely false. The only bank which can issue currency of any form is the reserve bank of the country/union (Reserve bank of australia, federal reserve, European central bank, etc etc).
2. Even when borrowing or loaning money to other countries, the reserve bank does NOT issue currency for those loans. That would devalue the currency in that action. When the government needs more money, they issue government bonds which have a yield (akin to interest) and a return (pay-out).
3. The only reasons that the reserve bank prints money is to keep the currency base adjusted to inflation and to replace old currency. If you remember the monetary stimulus packages in america, they were printing money to try and cause inflation - This is a third reason however this has both good and bad points, see point 4.
4. monetary stimulus is the printing of money (as opposed to fiscal stimulus which is the lowering of borrowing interest rates) which is designed to keep inflation within a desired range (desired by economists, not usually the population haha) when deflationary or staglationary events are occuring (like after the GFC) and fiscal stimulus has no more room to meneuvre.
5. If a standard bank issues a loan, the process they follow is they borrow money from the Reserve bank, at the reserve interest rate, they tack on some % for their costs + profit (that's why the reserve rate is currently 1.5% while your bank will charge you 2.8, 3, 3.5% etc). There is no printing money to create this loan, the reserve bank has a control of the currency base and holds reserves, issues them out to banks at a specific interest and generates profits from those loans.
6. while the GFC was caused by bad debt, most of the impact would of been minor if that was the only case. The major cause of why it was so widespread was actually due to derivatives being traded on bad debt, which as bad debt goes defunk, the derivative is worth zero. So there was huge amounts of money lost (about 20x the bad debt value) by people trading (sic betting) on bad debt.
Also just on the other points, bitcoin is technically finite... but Bitcoin has recently forked into 3 different currencies and quadrupled its bitcoin base. Bitcoin gold, Bitcoin Cash and SegWit2X are all bitcoin based and all have 20million coins. Bitcoin went from 20million total coins to 80 million coins now listed on its blockchain premise. Created out of thin air and issued to current bitcoin holders.
Cryptocurrencies have a great future, but it's not going to be up up and away into infinitely higher coin prices.
DCC Price at posting:
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