Sure, you can do that, but that’s not how the modern world works. And it can’t create enough debt.

For instance, if you borrow in USD,you generally have to put it somewhere (like a bank) who can loan it out again. How do you let two different people use a single bitcoin? You need to do that for Fractional-reserve banking.

I’d reference this as a longer example of what I’m talking about: http://thismatter.com/money/banking/money-supply-money-multi...