Putting your bitcoin to work...I definitely believe credit and debt are productive parts if the economy, so loaning out bitcoin (buying old school bitcoin bonds) certainly makes sense...but I am pretty sure the value of my dollars isn't going to go up. If I loan out my bitcoin and bitcoin's price jumps, I now have a lot more on the line (assuming the loan is denominated in Bitcoin).

One thing I should have mentioned is that in the BPI proposal, earnings from bitbond appreciation is supposed to be tax free.