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Bitcredit Protocol

Bitcoin Credit Money Supply for the Real Economy

"There is nobody to act as central bank to adjust the bitcoin money supply as the population of users grows. ... I don't know a way ..."

– Satoshi Nakamoto, 8 February 2009

Bitcoin adoption in the real economy is not happening. Yet.

Bitcoin is more than just a digital money. It is a revolutionary project that could solve some of the most pressing economic problems of our time: inflation, systemic fragility, economic inequality, boom-bust cycles, asset price bubbles. However, mass adoption of Bitcoin is not happening, it is mostly held as a store of value. A key roadblock is its volatility, caused by a fluctuating money demand meeting Bitcoin's fixed supply.

Bitcoin credit money

Bitcredit Protocol is a community-driven open software project to unblock the adoption of Bitcoin. It provides a fiat-less on-ramp and finances the real economy's working capital and wage fund needs through the decentralised issuance of peer-to-peer Bitcoin credit money.

Bitcredit mints ("Wildcats") create Bitcoin credit tokens by splitting electronic bills of exchange issued by businesses in payment for goods sold and services rendered. This backing by real world value ensures that Bitcredit is non-inflationary. At bill maturity, Bitcredit tokens redeem 1:1 into Bitcoin on mainchain. Minting fees rise and fall with money demand, the free market regulates Bitcoin credit money supply.

Bitcredit Protocol is free open source software which powers the Bitcoin ecosystem. Free market principles apply: any business can issue e-bills, anyone can run a Bitcredit mint.

End users

End users use Bitcoin lightning wallets with Bitcredit support for their payments. Through a combination with e-cash, payments are cheap, instant, private, censorship-resistant, and quasi non-custodial. In the rare event that a business does not redeem an e-bill upon maturity, the mint network and every prior party of the e-bill form a guarantee chain which secures redemption.

Business users

Historically, the availability of hard credit money has been the key enabler of economic growth, the basis for a nation's wealth and prosperity. Bitcredit Protocol will initially help businesses in fiat money economies stricken with high inflation or a broken banking system. From there it will expand to stronger fiat countries, as Bitcoin's value rises and then stabilises.

Suppliers

Trade credit with a Bitcredit e-bill can increase your sales, improve cash flow, and reduce the risk of non-payment by customers. Flexible payment terms can attract more buyers and increase their loyalty. You can use e-bills directly to pay your own suppliers or mint bitcredit to pay workers.

Buyers

Paying with a Bitcredit e-bill enhances your credit with sellers, it improves your liquidity and you save on financing costs. You can defer payments until you produced and sold final products which reduces your working capital requirements and helps you grow your business.

Stabilising Bitcoin's value

Bitcoin is currently too volatile for broad adoption. Volatility is a logical consequence when fluctuating money demand meets a fixed supply of 21 million. Like gold coin redeemable banknotes in the past, Bitcredit Protocol adds redeemable Bitcoin credit money tokens. Synching total money supply with demand which will stabilise the purchasing power of Bitcoin. Hyperbitcoinisation can begin.

How does it work in practice?
Here is a typical Bitcredit flow

How does it work on the inside?
Take a deep dive into Bitcredit

Businesses

Mint Network

End Users

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