> For the complete documentation index, see [llms.txt](https://bitcredit.gitbook.io/bitcredit-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitcredit.gitbook.io/bitcredit-protocol/why-bitcoin-is-not-enough.md).

# Why Bitcoin Is Not Enough

### 1. High Volatility <a href="#id-1.-bitcoins-volatility" id="id-1.-bitcoins-volatility"></a>

Currently, Bitcoin is akin to digital gold, its lack of price stability is problematic for a medium of exchange, especially when competing with fiat-pegged digital stablecoins. For businesses, pricing goods in a highly volatile currency introduces unnecessary risk and uncertainty.

### 2. No Monetary Elasticity <a href="#id-2.-no-monetary-elasticity" id="id-2.-no-monetary-elasticity"></a>

The fixed supply of outright Bitcoin does not accommodate seasonal, cyclical, or structural shifts in money demand by trade and industry. This rigidity acts like a roadblock for commercial adoption as it hampers the ready availability of liquidity for trade financing as and when needed by businesses.

> “A stable price level and a high and stable level of employment do not require or permit the total quantity of money to be kept constant." F.A. Hayek

### 3. Historic Context <a href="#id-2.-no-monetary-elasticity" id="id-2.-no-monetary-elasticity"></a>

In the 19th-century UK, bills of exchange and discount houses facilitated an elastic money supply on top of gold, unlocking vast industrial growth. Many countries world-wide adopted this system.

Bitcredit translates that model to the Bitcoin era, using smart contracts and cryptography.