The Bitcoin ledger doesn't provide credit. There's nothing stoping someone from offering a credit account (e.g. a consumer credit card) denominated in Bitcoin.
> There's nothing stoping someone from offering a credit account (e.g. a consumer credit card) denominated in Bitcoin.
It's definitely possible to offer a credit card transacting in bitcoin though it would have a number of technical differences. One big one is that the settlement process would need to be immediate, otherwise the transaction would be rejected. With a normal credit card transaction the funds don't actually transfer till the end of the day (if you're lucky) or the next business day (most of the time). With a bitcoin backed card it'd need to be immediate and the credit card company would need to have the bitcoin "at hand" at the time of the transaction.
Credit cards are a service that exists on top of traditional currency, so comparing the features of bitcoin to the features or a credit card is in some ways an unfair comparison; in other more pragmatic ways it reflects the way bitcoins and and traditional currency are used for online purchases today.
It's relevant because the article opens up comparing BC and CC. If there were a credit card denominated in BC, the credit provider would probably hold the BC for a while just like they do with money, therefore grating it's users the same warranties.
A better, tough far from perfect, comparison would be to sending money through mail to later receive the goods, or a debit card sans the paper trail.
The article starts from a fallacy, but that doesn't mean it's point is null.
