Decentralized Bitcoin-Backed Credit – Bitcoin Magazine

This is an opinion editorial by David Seroy, Founder and President of Old North Capital Fund.

It is the author’s opinion that credit-based, bitcoin-backed dollars will act as the bridge connecting bitcoin, dollars, the Lightning Network, validity roll-ups, and elements of free banking in a hyperbitcoinized world.

Bitcoin and the dollar are symbiotic. Like yin and yang, bitcoin and dollars provide balance. On the one hand, bitcoin acts as a counterparty-free, decentralized, scarce, digital bearer asset to hedge against excessive credit creation. On the other hand, the free market has an insatiable desire for issuing credit-based dollars which fill the role of both a ‘stable” unit of account and an elastic monetary layer.