The Elasticity Problem

Wörgl's approach was partly correct but problematic in parts. It was designed a "Schwundgeld" according to Silvio Gesell. Every month the people of Wörgl had to buy a stamp or their money would become invalid. Gesell's idea was to keep money circulating and to forestall harmful hoarding. Accordingly, Wörgl tainted the benefit of an elastic money supply with a boom-inducing quasi-inflationary element. At least, the stamp system was an honest tax, whereas today's fiat inflation is clandestine theft. Bitcredit Protocol prevents the hording problem, as credit money automatically redeems into Bitcoin when an e-bill is paid at maturity. 

A lack of metallic coin caused hunger and hardship throughout medieval Europe for a whole generation, as elastic currency was not yet invented. "The chief effect was that business slowed down: Everything shrinks. When there’s a shortage of coin, there’s a shortage of credit. The possibility of doing things vanishes — you would expect credit to increase but in fact it diminishes because people aren’t prepared to loan money if they are not certain they are going to be paid in the long run. You have a bit of a return to barter and people not being able to sell things as trade diminishes.”