Quote:
Originally Posted by Fuzz
If you don't have a currency backed by something, then its only value is what people perceive it to be which leaves it open to massive value fluctuations. That works against the fundamental purpose of a currency, which is stability. The weird thing about bitcoin is you have to invest massive amounts of real money to mine it, so you spend real money to get something with no intrinsic value.
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Is "full faith and credit of the us government" really something? Or is the purchasing value of a dollar what backs it? I think the real value with bitcoin is its acceptance by governments. Will it be allowed to trade in place of all government currency?