Replying to Avatar Max

Sound money advocates assume you need coin before commerce. But Lancashire built the Industrial Revolution on bills of exchange before accumulating gold, and Colonial America ran a sophisticated economy while chronically short of specie. The credit came first; the base money followed through export revenues. Understanding this pattern reveals how Bitcoin economies might bootstrap themselves.

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Jeroen Ubbink 1w ago

Reading through Von Mises' the theory of money and credit this is exactly what he describes.

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Bitcredit Protocol 6d ago

Correct, and this is important.

Let’s analyse Ludwig Mises’s writing:

“…before the development of the bank-of-issue system, especially in England, bills circulated to a greater extent than afterward; that in Lancashire, for example, until the opening of a branch of the Bank of England in Manchester, nine-tenths of the total payments were made in bills and only one-tenth in money or banknotes.”

Note that with “money” Mises means gold. In nostr:nprofile1qqsv7exgrnd0xd3gfhw5jl45596zuawudu39nzctk7vhxy58y4nr7mcpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhszrnhwden5te0dehhxtnvdakz7mt75fj, the base money is Bitcoin, not gold.

Payments can be made in e-bills, although Wildcat mints will reissue them fungible and dividable as non-custodial e-cash.

There will be no banknotes, the Bitcredit mechanism works with verifiably 100% backed and over-collateralised e-cash, denominated in #Bitcoin.