Block Chain Supremacy

In this day an age there are incentives to going into debt and playing a credit card game. In fact, I wouldn't be surprised if there were entire companies that exist solely because of the incentives to hold debt. The government and the banks want to expand the money supply, but the only way they can do it is if people are willing to go into debt, so the incentives get bigger over time. I suspect it takes a true sociopath to really figure it out, but one of the keys to it is how many accounts can you open and keep up with. A good credit score and multiple 'persons' whether human or corporate aid in the creating more accounts, and more accounts mean the companies you open accounts with can count your account as an asset.

It'll keep expanding until it goes down, and everyone sort of supposes we'll go back to gold in the end. The governments might do that, but think about how it's going to work. The impression would be that gold is backing the currency, but gold won't actually be the currency, so we will be in a similar position we are today. The incentives for the bankers will be to get people to borrow money, but they will likely be able to do the same thing they do today- which is lend money they don't actually have and then use the fact that they've lent you money on the asset side of their ledger.

What happens if you try to do something like that with a block chain currency like bitcoin?

Well, you can't.

The lender has what he has, and everyone else can see what he has via the block chain.

There's no worrying about whether or not they've got gold in Fort Knox or not, or maybe they do have the gold, but perhaps they play a little fast and loose with the paperwork; gold is heavy and prone to theft- that's why they started creating these large fortified structures to hold the gold in the first place. Unfortunately, these circumstances also provides a chance for chicanery made possible by the high probability that the gold will stay in one place while the people use paper and plastic allegedly based on the gold.

I'm thinking the lack of trust, which will be at epidemic levels once this crazy system goes bust, may lead to the adoption of a block chain currency.
Either that, or it won't matter what the government does anymore. It is entirely possible this issue will just be taken out of their hands.