The economic reasoning behind Bitcredit: real bills, elasticity, valuation, reserves, enforcement, redemption.https://www.bitcr.orgenMon, 31 Aug 2026 13:48:10 GMThttps://www.bitcr.org/economics/real-billshttps://www.bitcr.org/economics/real-billsAlways-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.https://www.bitcr.org/economics/elasticityhttps://www.bitcr.org/economics/elasticityWhy the money supply must follow demand: Wörgl 1931, the great bullion famine, and the Peel Act, and how e-bills give elasticity without inflation.https://www.bitcr.org/economics/exchangehttps://www.bitcr.org/economics/exchangeWhy money has value and what barter costs: Hans in Luck, the monetary premium, and the time and value lost when exchange has no medium.https://www.bitcr.org/economics/valuationhttps://www.bitcr.org/economics/valuationSatoshi named the problem: valuing real goods needs a trusted party. Real trades between businesses solve it: agreed prices regulate the supply.https://www.bitcr.org/economics/volatilityhttps://www.bitcr.org/economics/volatilityA fixed supply cannot meet fluctuating demand at a stable price. Credit money created and destroyed by competing mints is what stabilises it.https://www.bitcr.org/economics/reserveshttps://www.bitcr.org/economics/reservesWhy the gold standard grew inelastic as reserves drained from the real economy, and how a dedicated reserve token keeps bitcoin credit money elastic.https://www.bitcr.org/economics/enforcementhttps://www.bitcr.org/economics/enforcementSix proofs make peer-to-peer credit auditable: value, delivery, and redemption on the bill; assets, liabilities, and guarantee on the mint.https://www.bitcr.org/economics/redemptionhttps://www.bitcr.org/economics/redemptione-cash redeems 1:1 into outright bitcoin at maturity. Why that keeps issuers honest, caps the supply at real value, and makes settlement uncensorable.https://www.bitcr.org/economics/acknowledgementshttps://www.bitcr.org/economics/acknowledgementsThe spark came in the 2015 Greek banking crisis: Satoshi’s decentralisation joined to the age-old bills of exchange mechanism, plus Hayek and Fekete.