Some libertarians may be more pragmatic than others. For example, some may argue that so long as a government issued fiat currency is in use (as it is today), manipulations by the government should be held to a minimum. This may be the cause of the confusion.
Isn't this going to create a run on the currency? So say tomorrow some news comes out proving these btc whales are responsible for 80% of the order book and are manipulating the market, isn't it the slowest people to react who are stuck holding the bag?
Furthermore, isn't the problem with btc that we don't know if it's being manipulated or not? Manipulation or not at least I know what's going on with the dollar.
Isn't that basically the problem with bitcoin though? We can't perceive if it's being manipulated or not.
E: Actually that brings up another issue for me. Wouldn't that just be a run on the currency? So the last people to get out of manipu-coins are the ones stuck holding the bag?
No system promises that its actors will behave morally. What we're talking about is whether or not you fundamentally believe that government can and should exert force on the market. Those of us who believe they should not don't see a perfect and moral market on the other side, we just would prefer to exchange problems of force and authority with problems of interpersonal relationships.
Edit to further elucidate: It isn't exactly the loan that creates money, but what happens with the money after the loan. It will almost certainly land in a bank account somewhere, adding to that bank's reserves, which allows them to lend 90% of the loan's value again. (assuming a 10% capital reserve requirement)
It's perhaps better put like this:
You store a dollar in the bank. The bank makes a loan to a business to buy cars. The car company stores that dollar in another bank. The bank makes a loan with that dollar to a farmer to buy sheep from another farmer. That farmer who sold the sheep puts that dollar in the bank.
That one dollar was used in three different transactions, thus creating more US Dollars than were actually printed.
And on and on it goes.
Edited to add:
That's why runs on banks are so dangerous, because the bank never has the full amount of money in it's safe. It's using that money to make loans.
