Its better for the whole system because the car loan didn't entail an increase in the money supply. When you get a loan from a bank, they don't use money that's saved in the bank - they create new money. In the past, banks were required by law to have a reserve ratio - 10% a long time ago, 5% more recently, 0% during covid and maybe still (I out to check that) - that meant, for example at a 5% reserve, they could loan out 20x total deposits at the bank. But it was never loaning that money - it was always creating new money, so the amount of money in the world would increase.

That money then goes through you to the car seller, and they deposit it in their own bank, and that allows more money creation.

So there are a few effects from this... One is, there's a class of people who get free money. Another is, all debt reduces in real value over time, because prices rise if the money supply grows faster than population (its more complicated than population, but I'm not satisfied with saying GDP there instead, so I'm keeping it simple). And another is that debt grows faster than equity - so you should eventually get a society where only debt exists. And another is, no prices in this credit economy can ever accurately reflect the true equilibrium price at any moment.

Bitcoin fixes this whole shitshow. Its a bearer asset. You got it or you don't.

Maybe a dude buying a car doesn't notice the difference, but the difference is **_enormous_** - a bitcoin economy is so much more efficient than this, that I bet we get superpowers and open portals and Terraform Mars within a decade of going fully bitcoin.