I think the author contradicts himself just a little bit. On one hand, he points out that paper money was able to gain value due to its roots in gold. Later dow

I think the author contradicts himself just a little bit. On one hand, he points out that paper money was able to gain value due to its roots in gold. Later down, he ignores the idea that electronic money could initially be backed by paper money before that necessity eventually goes away as people gain more confidence in electronic money. I do agree that it would be hard to create a new form of currency that is backed by nothing but faith, but with a universally-accepted currency as a foundation, I think a private currency could be possible. Unfortunately, the problem of assuring people that it is impossible for someone to just "create" the currency is very difficult. With paper money, various tactics are employed to prevent counterfeiting, but it still happens. With digital currency, this problem would be multiplied. The solution would likely involve ensuring that the entire process is very transparent to those using the currency.