I'd like to disagree about how money is created and what it represents. You're right that when a loan is made more money is artificially entered into circulation. You say that it isn't normal. However, if you read any history you'll see in sources like Roman history that loans were made regularly and it wasn't a new concept for the concepts so loans existed for quite a long time. A loan is basically a replication of existing money with the idea of the creation of new value. The problem with a deflationary currency like Bitcoin is that as new value is created (i.e. work, products, people, technologies, etc.) more money is necessary to exist in circulation in order to avoid deflation. If new money didn't enter USD people would just "HODL" their dollars and wait for their money to go up. However, when the economy is not doing well, in order to encourage investment and spending, it's better to spend your money now and obtain things and make investments to avoid being hit by inflation and lose money. One of the ways governments do this is by increasing interest rates so that it becomes expensive to take out loans and makes people want to keep their money in the bank.
As for alternatives to fiat money. There have always been alternatives such as owning property, or gold. Your argument is basically leading to the idea that Bitcoin is the new gold. However, the problem with that logic takes away from the technology aspect of Blockchain, of which money is only one application. I agree that Bitcoin money is a positive development and gives people a quick escape from the nasty manipulations of government. But I recommend people to be realistic about their investments. Avoid the hype and emotion whenever you can. Don't believe everything you read, inform yourself.
AHHHHHHH! Relief. Finally somebody who understands how economics work and is brave enough to risk the flames by challenging incorrect statements. I'm new to the community and I too am excited about the exchange rates on crypto, but I've been growing steadily disheartened at how many people are upvoting, praising, and evangelizing false postulates.
Banks do not print money, nor do they generally borrow from the Fed. Remember the good ol' Savings and Loan from "It's a Wonderful Life"? Just because big capital easily crushes the individual, leading people to form a resistance against the machine mentality, doesn't mean there is some conspiracy.
Thanks for the positive post! I'm also relatively new to crypto and especially so to Steemit. But I'm fascinated by cripto and try to educate myself as much as possible. Yes. Banks do not print money. The money is printed by different agencies in different countries. In the US it's the Bureau of Engraving and Printing which prints on behalf of the Federal Reserve. I visited their museum in Washington DC some years back. In Canada, it's the Royal Canadian Mint which prints on behalf of the Bank of Canada.