How will the economy work

After learning that the majority of what most call “money” that is circulating now is just credit and loans, which is the cause of economic cycles of booms and busts. How will the economy of the future look like if the world adopts the Bitcoin standard? 1. Will fiat currency still have a place? Would it be better or worse if fiat still exists and BTC remains as just a SOV? Would that be just a transition period for BTC to become the only medium of exchange in the end? 2. How will credit and debt be created with BTC being the standard?