Fiat monetary aggregates are pure chaos. Move a bank demand deposit into a term deposit and M1 falls suddenly, even though no money has been repaid or destroyed. But the fiat bank has merely renamed one of its liabilities! With Bitcoin and Bitcredit, sound money, banks can neither create base money M0 nor add credit money M1. A term deposit requires an actual transfer of Bitcoin, which continues to exist and is simply held by the honest bank. ==> So, M2 rises while M1 stays unaffected and true. Perfect money.

That transaction rate is a very old status from many years ago. Meanwhile with L2’s including non-custodial e-cash like with Bitcredit, transaction rates are pretty much unlimited, a multiple of what VISA and Mastercard can do not to mention: free open-source and censorship resistant.

I agree with Verda Ventures’ thesis in their latest newsletter: "Non-dollar stablecoins do not need to displace the dollar. They need to solve a specific problem inside a specific market better than a dollar token can." Most importantly, this idea applies not only to stables but also to #bitcoin. Why? Because stables, while less volatile, inherit all the institutional problems and political attack points of fiat currencies. Even today, #bitcoin has important capabilities which stablecoins don't: - Bitcoin is nobody's liability, there is no issuer - It has absolute finality where stables can be seized - Jurisdictional neutrality in geopolitical uncertainty And this is just today! If and when Bitcredit Protocol starts taking root, it will naturally stabilise Bitcoin's purchasing power. Once stable, #Bitcoin will beat every stablecoin in the world, including the dollar. (NB: Unless the U.S. switches to a Bitcoin-redeemable dollar.) The endgame will be one neutral asset and one censorship-resistant settlement network worldwide.

The "Global Trade Finance Gap" is officially estimated at $2.5 trillion, but unmet financing needs of exporters and importers are hard to measure. Gap studies typically use rejected applications, but roughly half of all rejections may concern non-creditworthy applicants. The unmet demand however may not be the demand in rejection data but the demand that never materialises at all. “If you’ve been rejected once, you may not come back to the banks anymore,” says Marc Auboin, Head of Trade Finance Research at the World Trade Organization. In this scene a new option is rising: #Bitcredit Protocol facilitates direct trade finance between exporters and importers on decentralised #Bitcoin rails. For the global production sector the new method promises relief against the increasingly dysfunction of traditional banking caused by geopolitical tensions, political interventionism and fiat system centralisation.

Too few indeed. Bitcoin must become medium of exchange. Commercial credit, for real goods in the supply chains, is the way.

A bitcoin company in the supply chain!

That’s very interesting! Are they also still active in the textile supply chains? The textile industry was always a heavy user of the bill of exchange in the times of the gold standard. Bitcredit Protocol is now available on mainchain, so there could be an excellent case study for the new electronic bill of exchange on Bitcoin rails.

What elite? We’re plebs.

Shocked to learn that Economist Thomas Greco has passed away a few weeks ago. I must have corresponded with him by email just days before. Tom had a unique practical experience with community currencies and firmly supported free choice in currency. I always enjoyed my debates with him, recently here on the question of an ideal base money. https://blog.bitcr.org/p/chapter-2-a-world-without-money/comment/103056739

Yesterday's Austrian Economics Salon fled Vienna's Hayek Institute in favour of a pleasant open air evening. Stephen DeMeulenaere, accompanied by Scott Morris, shared their lifelong practical experiences with regional and alternative currencies, reasons for success and reasons for ultimate decline. This holds some valuable lessons for the big job of overcoming today's disastrous nationalised fiat currencies and hopefully, the return to a sound monetary system and free choice in currency. PS: #Bitcoin is our best chance as the economically illiterate political caste has no chance to mess up a Bitcoin Standard like they did with the Gold Standard.