quote:
No different than any government backed currency, unless you actually feel all warm inside when you hear "full faith and credit of the US government."

Agreed, but there is a massive infrastructure behind that with assets to back it up.

What does a bitcoin have to back it up?

quote:
Do you deny that people right now are paying around $31.32 for a bitcoin?

I don't doubt it... And this shite would make a lot more sense if it was an actual 1:1 transition, as a credit to buy something.

You are mining for something that is not backed by real currency... Hence why I asked earlier, what if everyone decides to exchange out their bitcoins for USD's at one given time. Since you are mining something that is not back up by currency, there are more coins than funds...

Also, these coins were obviously created and planted by someone... Why they did that instead of selling them directly, I'll never know. But what is stopping these individuals from making up millions for themselves and cashing out after all of you minions invest money into the system?

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Posted by WikiTiger

Member since Sep 2007

41055 posts

Posted on 2/27/13 at 4:56 pm to Lsut81

quote:
what if everyone decides to exchange out their bitcoins for USD's at one given time

if there were an abundance of sell orders on the exchanges, I imagine the price would drop tremendously and quickly

quote:
But what is stopping these individuals from making up millions for themselves and cashing out after all of you minions invest money into the system?

No one can "make up" bitcoins. They can mine them, but that takes a great amount of resources (i.e. value for value).

The protocol prevent the creation of new bitcoins, and if attempted would simply be rejected by the network. As I've mentioned before, forks of the bitcoin blockchain can be created by they would essentially be a new currency.

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