Once Bitten! A Bitcoin Podcast. Bills Of Exchange Built On Bitcoin. @HubertusVIE # 550
Jul 4, 2025
Hubertus Hofkirchner, a Bitcoin entrepreneur and founder of BitCredit, joins the conversation to explore transformative ideas for global trade using Bitcoin. He discusses the challenges of the fiat system and the innovative solutions like bills of exchange that Bitcoin can offer. With insights from his banking background, Hubertus emphasizes the importance of integrating elasticity into Bitcoin for frictionless transactions. The dialogue also touches on the historical evolution of financial instruments and the critical need for decentralized economic models in today’s world.
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Elasticity in Money Supply
- Ludwig von Mises and Friedrich Hayek taught that a fixed base money supply needs an elastic credit supply for trade to thrive.
- Bills of exchange historically provided this elasticity, enabling businesses to grow beyond mere gold availability.
Apricots and Bills of Exchange
- Apricot farmers in historical Europe used bills of exchange to finance processing and selling their products.
- Merchants promised payment later, relying on future consumer sales to fulfill these credit promises.
Bills of Exchange Decline
- Bills of exchange were common in international trade until central banks like the ECB abandoned their discounting.
- Current fiat money supply relies on government bonds, allowing unlimited creation unlike trade-backed bills of exchange.
