Yes hyperinflation is one way to wash out the debt. But the interest rates can be adjusted to protect against inflation. When interest rates dont grow then then state can only print money in such a case. That however will further push into hyperinflation. It is a well known pattern of past inflation crises together with an acceleration in money velocity.

I think that hyperinflation occurs exactly because the trust in the debt is shaken since that debt is the fundamental building block of our currency.

Buying debt is making a bet on the state, buying bitcoin is betting against.