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The same can be said for unbacked fiat currency. All the USD is anymore is "proof of work" (printing), yet they still are considered money. You could easily argue that the USD is losing favor in the market and this is because it is unbacked (and I would agree with you) but I do believe that if the USD was printed at a fixed rate, regardless
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That does not mean it's backed by something, that means that there is proof-of-work to produce them. Backed would mean that you can exchange Bitcoins into some commodity at a flat/guaranteed rate with the issuing institution or perhaps the Bitcoins themselves are a commodity that can be "consumed" or "used". For example, soy
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@Clayton I do agree that the problem with modern money isn't with the ability to mine/produce more of it, it's that the value 'assigned' to money does not match the cost to produce it. I would personally rather have a form of currency that I knew would remain of constant value, with no ability to mine/produce more thereby increasing
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@Clayton [quote]People would prefer to transact in currencies that actually meet their needs. All things equal, I cannot imagine someone choosing to use an unbacked over a backed currency.[/quote] My curiosity lies in why you think people would choose to switch from a commonly accepted but unbacked currency with a finite supply (no one can print new
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I am of the opinion that anyone who claims their argument is more valid because of their credentials and not because of their argument is not someone worth arguing with. In this case, they seem to think that because of their credentials their argument is more sound than yours. While the process of getting his credentials may have provided him with a
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@Clayton If you are willing, I would like to run through a hypothetical with you regarding the Bitcoin concept. Let's assume that all of the technical goals of the Bitcoin pan out. This means that they are mathematically proven to be unhackable, they do have an upper limit to the amount in circulation (21M), and the distributed system works and