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> Paper money imo is backed by regional Economy or iow labor + what labor can buy/buys/saves. In this sense, bitcoin is exactly the same..... I am afraid I th

> Paper money imo is backed by regional Economy or iow labor + what labor can buy/buys/saves. In this sense, bitcoin is exactly the same..... I am afraid I think your answer and everyone who is trying to compare the Trust we have in today's paper money to bitcoin, is very much flawed. I want to be explained that I am wrong, but I am not convinced by your argumentation. Imagine a country of 200 people. They each work and provide products and services to one another. They gradually value the value of theirs service rendered and production. Then they need to easily exchange cows for shoes for houses for legal advice for whatever goods and services. They then come up with a way to value these goods and services for ease of exchange. So they say your one hour of work is worth $4 then you can easily take that and buy 1 hour of legal advice + 1 piece of bread and be left with 35 cents. That representation and value-holding entity is money as we know it today. It did not just appear. Bitcoin is the EXACT opposite. 10 people come together in the 200 people economy. They decide they create pieces of cloth and give it a value of X. Then they make X amount of those, granted the task of creating them becomes harder as you go. Then as they create more, X magically is worth 1 lawyer hour today, 4 cows more tomorrow, etc... Then after creating these many pieces of cloth, and valuing them at X, then tell ME that I can exchange my car for it. With what we have today as money, we created goods and services, then accepted to use that as a way to exchange, hence the entirety of the money in circulation was equal to exactly the amount of Good and Services rendered, debt, etc... With Bitcoin, it is equal to nothing other than what a few people decided and did not create anything for it. I am sure I am wrong, but that is just how I see it. Bitcoin could very well succeed, but the only thing this would mean is that everybody was duped.

shitgoose 13y ago
You are correct, bitcoin and dollar are exactly the opposite. Dollar prices inflate on a whim thanks to Nixon, Greenspan or whoever is at the helm (speaking of cows, check car prices in 1980s and compare to today). Bitcoin prices theoretically should be much more stable since the rate of growth of BTC monetary base is algorithmically limited and grows predictably and slowly.
CamperBob2 13y ago
So they say your one hour of work is worth $4 then you can easily take that and buy 1 hour of legal advice + 1 piece of bread and be left with 35 cents. That representation and value-holding entity is money as we know it today. It did not just appear. The problem that bitcoin is trying to solve is that the currency representation you're talking about does just "appear." It appears, potentially in vast quantities, whenever the government issues more of it. This is a big problem for anyone who has savings denominated in the currency.

shitgoose 13y ago

You are correct, bitcoin and dollar are exactly the opposite. Dollar prices inflate on a whim thanks to Nixon, Greenspan or whoever is at the helm (speaking of cows, check car prices in 1980s and compare to today). Bitcoin prices theoretically should be much more stable since the rate of growth of BTC monetary base is algorithmically limited and grows predictably and slowly.

CamperBob2 13y ago

So they say your one hour of work is worth $4 then you can easily take that and buy 1 hour of legal advice + 1 piece of bread and be left with 35 cents. That representation and value-holding entity is money as we know it today. It did not just appear. The problem that bitcoin is trying to solve is that the currency representation you're talking about does just "appear." It appears, potentially in vast quantities, whenever the government issues more of it. This is a big problem for anyone who has savings denominated in the currency.