Comment by panarky

Exactly. Here's a revised "worked example".

Day 1: Alice buys 1,000 Bitcoin from Bob for 1 USD on a street corner

Day 2: Market price on the street corner is 1 Bitcoin for 1,000 USD

Day 3: Alice sells 1,000 Bitcoin to Charlie for 1,000,000 USD on a street corner

The street corner doesn't have to borrow 1,000,000 USD from a bank.

Charlie brings the USD to the trade.