Bitcredit Protocol on Nostr: This: 👇 ...

quoting
nevent1q…z4wa

In a realistic #bitcoin future, there exist only two kinds of money:

1. Bitcoin base money (BTC, M0)
2. Bitcoin credit money (Bitcredit, M1)

Credit money may only be created if it’s backed by real goods entering the supply chain. That’s what makes it honest.

Example:
1. A farmer wants new machinery.
2. He finds a bank (ultimately private savers) willing to lend Bitcoin.
3. The deal: “10 BTC now, pay back 12 BTC in 5 years.”
4. The extra 2 BTC cover costs, risk, and profit.
5. If the farmer fails → the bank takes the loss.

No bailouts. No money printing.

Clear enough?

PS: At 12 for 10 the bank is fine if 1 in 5 loans went bad, with a total loss. Unlikely though. With sound banking practice loans are backed by real collateral.

PS: And no state guarantees — those breed inflation.