Let’s say I created my own currency called Pepecoin and controlled the printer for this currency. I print 100 Pepecoins and loan it to you at 3% interest. I expect you to pay me back 103 Pepecoins next year. I will only accept payment in Pepecoins.

A year has passed and payment is due. You were unable to magically create another 3 Pepecoins out of thin air because only I can print them. So you are in debt. Sounds like you need another loan. 🔁

Is this not how fiat works at the simplest level? #asknostr