Quote:
Originally Posted by Slava
I don't know what you mean by "mining" and really only have a limited understanding of this whole fad, but the reality is that the value is supposed to come from supply and demand. What's stopping someone from counterfeiting these though? Or producing more? I get that the difference is that with fiat money someone can just produce more and devalue the currency, so what's stopping that here....someones word?
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Yes, basically.
Everything is open source though, from the code that calculates difficulty, to the release of bitcoins and all that. You can even see where every single bitcoin in is in the entire system. The guy with the most bitcoins in one wallet currently has something like 110k bitcoins, while the next person has 80k.
In some ways, I can see it attractive - since all of the machinations are transparent. Not just "We're printing money until the economy improves" in the "real" world.