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Bitcoin's True Potential: Why It's Not Money Yet!

Dec 12, 2025
Guest
Hubertus Hofkirchner
In this chat, Hubertus Hofkirchner, an Austrian-school economist and BitCredit Protocol founder, delves into Bitcoin's potential as an economic asset. He discusses the lack of a credit layer critically needed for Bitcoin to function as true money. Highlighting the importance of flexibility in monetary systems, he introduces concepts like e-bills and wildcat mints for decentralized credit. Hubertus also critiques the role of banks in money issuance, emphasizing the need for innovative, non-custodial e-cash solutions in the evolving Bitcoin-based economy.
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INSIGHT

Bitcoin Is Base Money, Not Yet Money

  • Bitcoin is a strong base-money candidate but not yet a full monetary system.
  • It needs a Bitcoin-denominated credit layer on top to function as real money in the economy.
INSIGHT

Divisibility ≠ Elasticity

  • Divisibility alone doesn't solve economic needs; elasticity does.
  • Production requires an elastic credit layer to finance ongoing supply chains and wages.
ADVICE

Create Token Money, Not New Base Supply

  • Build token money (currency) on top of Bitcoin to supply trade and industry.
  • Use tokenized claims that adjust price-of-money (discount rate) instead of changing base money supply.
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