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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 4d ago

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

Bitcredit Protocol 4d 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.

Bitcredit Protocol 4d ago

Regarding Max’s article below:

Why is it so important that Bitcoin credit can bootstrap even where nobody has bitcoin, yet?

Remember the Greek Euro crisis of 2015, or the Cyprus haircut of 2013, or the Lebanese Central Bank Fraud of 2019.

In a monetary crisis, our powerful fiat enemies will simply declare bank holidays. Without access to bank accounts, nobody can “buy bitcoin”. This is a crucial problem, because in a fiat crisis is the best moment to switch to Bitcoin.

So here is the solution:

Even in a crisis, businesses still have access to their goods for sale, they actually must sell them before they spoil.

By selling on credit, they can create raw credit money, bills of exchange, which the Bitcredit Network of independent Wildcats can mint into fungible, divisible, and secure Bitcoin credits. Everyday people, workers, can get paid and can spend, the switch to Bitcoin is possible.

This is how we can kickstart Bitcoin economy in a fiat crisis.

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