Yesterday's Austrian Economics Salon fled Vienna's Hayek Institute in favour of a pleasant open air evening. Stephen DeMeulenaere, accompanied by Scott Morris, shared their lifelong practical experiences with regional and alternative currencies, reasons for success and reasons for ultimate decline. This holds some valuable lessons for the big job of overcoming today's disastrous nationalised fiat currencies and hopefully, the return to a sound monetary system and free choice in currency. PS: #Bitcoin is our best chance as the economically illiterate political caste has no chance to mess up a Bitcoin Standard like they did with the Gold Standard.

Why #Bitcoin will be indispensable? Because banks have been informally politically captured, not expressly and intentionally, but as a clear side effect of the recent trend to authoritarian money and banking law. In most countries, banks now "debank" customers on a whim, meaning they simply close accounts without due process or even giving a reason for the affected customer to respond to. This works on an enormous false positive ratio. For businesses, most of which are legitimate, this is extremely disruptive in digital age. In South Africa, the central bank enjoys even more power, they can seize anybody's fiat money from any bank under their power. This is a sign of things to come everywhere with digital central bank money, #CBDC. #Bitcoin is mankind's only hope against tyranny and the misery, war, and poverty which comes with it. https://newsday.co.za/business/18817/well-known-south-african-loses-r4-2-million-after-2-emails-and-one-government-gazette/

So, you want to understand how Bitcoin can become a true money, a medium of exchange? And what's next? Bitcredit Protocol has three talks at @BTCPrague this week, the first is on the Main Stage at 17:20 on Thursday. See you there!

It's not even about "when". At @BTC Prague, I will talk about where the fiat experiment is ALREADY failing, and how bitcoiners can profitably fill the gap.

Holding a workshop at MAD Bitcoin Summit tomorrow. Join me for a very different understanding #Bitcoin. Includes a short Deep Dive into real #AustrianEconomics.

Madrid 🇪🇸 is quite odd, when it comes to #Bitcoin. When one asks in Austria: “Can I pay in Bitcoin?” one gets just a simple “No.” a blank glance. In Madrid it’s: “Noo” *giggle* Had this four time yesterday. I think this can change, but we must get some global supply chains on #Bitcoin. Real economy.

Visit www.bitcr.org and you find will a very different Bitcoin world: Bitcoin is infrastructure, not asset speculation: Today most hear “Bitcoin” and think: - volatility, - treasuries, - speculation, - collateral lending, - mining, - ETFs. Instead, in Bitcredit thinking, Bitcoin is the neutral settlement layer and finality anchor for international trade. The credit is created by real supply chains moving goods, not by abusing Bitcoin abusing as collateral and hoping for appreciation. Bitcoin will appreciate BECAUSE and WHEN used in international trade. It will be the world's geopolitically neutral money. View quoted note →

Here is an interesting project to review, now that @Bitcredit Protocol moves supply chains onto Bitcoin rails.

GitHub

GitHub - cbonoz/consensus-grow-18: Consensus 2018 Challenge - GrowNYC and Tierion

Consensus 2018 Challenge - GrowNYC and Tierion. Contribute to cbonoz/consensus-grow-18 development by creating an account on GitHub.

I will be there, too! Doing a workshop on Bitcoin-native Trade Credit. View quoted note →

Buckminster Fuller is unsound economics, his energy theory has a similar mistake as Marx’s labour theory of value. Labour input does not determine value. You can dig a pit for hours, and it may not have value. Spend more work on closing it again. Less value if there ever was. Energy input does not determine value. You can spend 1 or 100 kWh in electricity on a room where nobody lives, and there is no value. Fuller conflated cause and effect. If people economise on energy because it comes with a price then a richer economy will likely use more of it. Not the other way round. It’s not a driver but an indicator to be used with caution.

On the Misconceptions of Deflation in Bitcoin ================================== Bitcoin is NOT ‘deflationary’, my Bitcoiner brothers. That’s utterly, totally wrong. Let’s get our economics straight. Deflation is when the money supply does not keep up with the money demand. That’s the definition. No more, no less. 1. There is constantly supply added to the stock of Bitcoin. That’s not deflation, clearly. . 2. Prices falling because of technical progress? That’s not deflation, that’s productivity growth. 3. Exchange rate of Bitcoin rising? Not deflation. It’s the fiat currency’s inflation due to oversupply. 4. Obviously the exchange rate of Bitcoin can be falling at times. Clearly not deflation anyway but neither inflation. Deflation is an undersupply of the economy with money. It’s the supply chains grinding to a hold because something or someone strangulates the money supply. Goods don’t move, lose value, spoil. Deflation can have all kinds of price effects at different stages from when the disequilibrium started. It is however, always a most destructive force in the real economy causing unemployment and poverty. Don’t desire to live to see it at work.

Bank’s demand deposits, gold custodied for convenience, enabled re-hypothecation. I think it was foolishness, laziness, the first step to the fraud which brought us the corrupt fiat money.

In our geopolitically tumultuous times, even governments now see the wisdom in using Bitcoin instead of some hostile fiat money. Note that Bitcoin is already showing its mettle as the ideal money for international trade. The newsletter of @BTCprague reports: “Iran would impose a $1-per-barrel transit toll on oil tankers passing through the Strait of Hormuz, only payable in Bitcoin. so funds can't be confiscated."

Prove Mises wrong.

Trade runs on credit. The superstition against all forms of credit in #Bitcoin stems from the almost complete absence of businessmen in Bitcoin. Far too few of us know about the production and supply chains of real goods. Yet, it will be always held against Bitcoin if, unlike fiat, it cannot do its work in the real economy: money for the redemption of current trade credit, also called "currency." Bitcredit Protocol now adds the currency layer which will make Bitcoin usable in world trade: - geopolitically neutral - unbureaucratic and fast - efficient and cheap

I wonder if (m)any Bitcoin maxis really understand Bitcoin? Or are they just chasing the dream, without knowing what it takes to bring the dream about. That’s naive. Or do they only plot on NGU, when more and more capital flows in. That’s greed. How many know the real workings of a monetary system? Consider the “Folly of the World”.