“The penny is destined to be eliminated or made of steel.” Ron Paul End The Fed

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Most Bitcoiners see government money printers going brrrrrr as a reason to celebrate. That’s not what this article is about. We will learn about Gandlaf’s money printer software calledc cashu-brrr. This allows us to print little notes with QR codes of blinded signatures on paper. They are quite literally “paper Bitcoin,” but that’s okay. There are those who say fractional reserve banking is fine. Others think fractional reserve banking is the worst thing in the world. If you want to argue about it, go to a libertarian meetup and yell at complain to your heart’s content. That’s not what this is about. Of course, the name of my website may give a clue to the author’s bias, however these brrr bucks are changing this authors perspective.

Let me be clear. Those who advocate putting your entire stack in a fractional reserve system are highly regarded. You should never put more sats than you are willing to lose entrusted with a custodian. We all need to live in the fiat world to some extent. We can’t convince everyone at the swap meet and their mom to accept the good word of Satoshi. We all must make compromises to feed our families in a debt based monetary world. We don’t have to like it, but c’set la vide. Just don’t do anything that would make Bugs Bunny say, “What a maroon?”

## Cashu Brrr is A Bearer Instrument Redeemable For Real Sats

Cashu allows us to make pennies great again. Since the penny is dead, many businesses are displaying signs to inform customers they will no longer be handing out these zinc tokens any more. It’s no surprise. It’s amazing the coin lasted as long as it did. This gives us an excellent opportunity to show some of the problems bitcoin can solve. Can’t make exact change? Well, what if we print pennies using cashu-brr notes instead? The volatility makes it difficult, but that’s not the point. What do we do if the dollar gets to expensive to print? Have you been to one of those stores with branches of dollars. You can’t find anything less than $1.25 these days. Many items are $5.00 or $7.00 and shelves are often empty. This doesn’t look like a healthy, stable monetary system the government would like you to believe. People talk about the volatility of bitcoin, but they they see the cost of groceries skyrocket. They never see the dollar falling. They also don’t read books like When Money Dies, nor understand that the price of gold did wild things back then too. The world is making Gold do wild things again. Funny thing is that gold once backed by the dollar. The government rug-pulled the people again and again, until all the gold was gone. At least it no longer backed the dollar. Copper stopped backing the penny a long time ago. Now the zinc is too expensive to print pennies. What ever happened to that gold audit anyway? See where this is going?

Cashu is paper money backed by bitcoin. Many people in The United States of America still believe the dollar is backed by gold. This paper is backed by bitcoin and can be transferred to anyone with a mobile phone. It only works one time however since it’s magic Internet money, this paper bitcoin can only be redeemed once. Of course, you still need to trust the mint, but Hal Finney talked about this in 2010.

"Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.

Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.

George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.

I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today."

Hal Finney, December 30th, 2010

### Are Cashu Mints Self-Custodial Bitcoin?

No. They are like bitcoin banks. Once you earn 10,000 sats, you could easily transfer those sats to something like Bull Wallet which uses Liquid. Yes Liquid, nevermind the news. The news can’t even find the right bitcoin symbol. Liquid still works and fees are low. Should you give Bugs Bunny a reason to call you a maroon? Not at all.

You can still 100,000 sats in chain and the fees are pretty damn cheap. Who in their right mind would spend 500,000 sats on Cold Card to save 100,000 sats in self-custody? Nobody. If you have a few million sats, you might want to consider buying a hardware wallet. If you have more, maybe your hardware wallet should have a secure element. If you have an amount that makes you uncomfortable, you should get comfortable with a password with small amounts first. Practice makes perfect as they say. Make sure your loved ones can jump that technological hurdle. Send 100,000 sats and test your setup until you fell comfortable. Got a wife? She should be comfortable too. This is not financial advice, cybersecurity, nor relationship advice, but it is prudent to start small and learn enough to feel comfortable with what you are doing. Cashu is a great way to start. It is a wonderful first step to take in learning what bitcoin actually is: Peer-to-Peer Electronic Cash.

https://github.com/Marc26z/fullReserveBitcoin/blob/main/blog/wtfIsThis.png?raw=true

This Cashu has some risk of rug pull, but we are talking about 500 sats. There is no way to send 500 sats on chain. We can’t expect a new-coiner to set up a lightning node. It’s a pain in the ass for me. How the hell would a brand new person who does not have a job in IT do that? It would be easier to bring back the penny.

• We can give newcoiners 500 sats on paper.

• They can scan this QR code with the MiniBits Wallet

• They can learn to write down 12 words.

• They can learn what those words mean.

Most people could concatenate a key like the one on the Seed Signer Seed QR [READ.ME](https://github.com/SeedSigner/seedsigner/blob/dev/docs/seed_qr/README.md) They can use Cashu on Minibits to learn self-custodial bitcoin with little risk. Everyone likes to talk about the price of bitcoin. Here is 34 cents worth of bitcoin. Toddlers know what paper money is. Paper money is tangible. It’s visual. It makes you move by physically grabbing an object in meat space. It’s paper backed by electronic cash. Anyone who ever bought an ice cream from a truck playing music knows what cash is. The cash you use to buy ice cream is not backed by anything. This piece of paper is backed by electronic cash. What a maroon great way to learn about bitcoin?

Please Visit https://github.com/gandlafbtc/cashu-brrr for more information and to https://brrr.gandlaf.com/ to experiment with it.

Marc Kat

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