The huge growth of debt is a sign that inflation has been too low for too long in too many places. As long as the ECB and the Fed treat 2% as scary-high inflation, paying back debt becomes far more difficult.
To start solving the debt problem, the central banks should start targetting 4-5% inflation for a decade or so, and allow it to go a little above the target, rather than trying desperately to hold it down to less than 2%. This would reduce debt while encouraging investment and economic growth, which would bring down unemployment, which would help pay off debt. It's a virtuous cycle.
In contrast, Bitcoin is a deflationary currency. Deflationary regimes favor hoarding, make it impossible to invest, and ultimately benefit only the wealthy. Reasonable levels of inflation on the other hand favor economic growth, investment in real assets, and they favor the productive working class over the idle rich.