// THEORY
Sound money still needs a credit layer.
Bitcoin fixed the money. It did not, on its own, give commerce short-term credit that clears against real goods. These are the mechanics Bitcredit builds on.
01
Real bills
Always-on liquidity for the real economy: e‑bills are limited by the value of goods in the supply chain, and reflux on sale extinguishes them.
READ02
Elasticity
Why the money supply must follow demand: Wörgl 1931, the great bullion famine, and the Peel Act, and how e‑bills give elasticity without inflation.
READ03
Exchange
Why money has value and what barter costs: Hans in Luck, the monetary premium, and the time and value lost when exchange has no medium.
READ04
Valuation
Satoshi named the problem: valuing real goods needs a trusted party. Real trades between businesses solve it: agreed prices regulate the supply.
READ05
Volatility
A fixed supply cannot meet fluctuating demand at a stable price. Credit money created and destroyed by competing mints is what stabilises it.
READ06
Reserves
Why the gold standard grew inelastic as reserves drained from the real economy, and how a dedicated reserve token keeps bitcoin credit money elastic.
READ07
Enforcement
Six proofs make peer-to-peer credit auditable: value, delivery, and redemption on the bill; assets, liabilities, and guarantee on the mint.
READ08
Redemption
e‑cash redeems 1:1 into outright bitcoin at maturity. Why that keeps issuers honest, caps the supply at real value, and makes settlement uncensorable.
READ09
Acknowledgements
The spark came in the 2015 Greek banking crisis: Satoshi’s decentralisation joined to the age-old bills of exchange mechanism, plus Hayek and Fekete.
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