The first units of such a currency are "issued" when someone takes the other side of the bet. If I think bitcoins are going to be worth more soon, I can offer t

The first units of such a currency are "issued" when someone takes the other side of the bet. If I think bitcoins are going to be worth more soon, I can offer to pay the system $100 worth of bitcoins to generate 100 cryptodollars. If the price goes up, I make a profit because the size of my debt shrank. If the price goes down, I lose money. These systems require the speculators to lock money in the system as collateral to handle price swings. Meanwhile, anyone who wants stable cryptodollars can use them without price fluctuations. There are several ways to peg a cryptocurrency to a price described here: https://blog.ethereum.org/2014/11/11/search-stable-cryptocurrency/ https://blog.ethereum.org/2014/11/11/search-stable-cryptocur... Here's a slightly different method built on top of Ethereum, a platform for defining transaction logic on a global database: https://www.reddit.com/r/ethereum/comments/30f98i/introducing_edollar_the_ultimate_stablecoin_built/ https://www.reddit.com/r/ethereum/comments/30f98i/introducin... We can create currencies based on any price, whether it's the price of an existing currency, gold, or an abstract price, like a price index. This ability will change the world. My email address is in my profile if you have more questions. There's some fascinating stuff going on out there.