One day, while I was learning about cipherspace, I discovered BitCoin . BitCoin is a completely decentralized, anonymous online monetary system that relies on a distributed database to facilitate transactions. The creator put a great deal of effort into ensuring that the system is secure and reliable…

This statement is provably false as seen by BitCoins. There are places that accept them and while you may not have need of those particular goods/services, they exist none the less.

As far as I know you can’t buy a bag of potatoes, but when gold coins were first minted and traded as a means of currency you couldn’t buy everything with them. Some shops are likely to prefer the established system (barter, USD, etc.) for some time. Growth of a new currency is a slow process and n…

Again, this statement is false. There are already people who accept BitCoins as payment for goods and services.

I am not sure if you picked my name just because it was convenient but I would cheat on my taxes without a second thought if I knew I could get away with it (or at least if the probability of getting away with it was high enough to outweigh the risk of getting caught).

It will be established one way, guided by the premise that praxeology and mutual exchange implies. And yes ofcoarse it will all happen on the market via your spontaneous order. Bitcoin(Or anything like it) will not be the successor of the US dollar. Even if government dissapeared over night. Hon…

The regression theorem explains why money has value to people. It has value to people and it is valued on the market because: people want it in order to use it to get other things they want people hold onto it because they know that it will have value in the future Menger explained the orig…

How do those people know how much a loaf of bread costs in bit coin currency? I think there is a better question: how does anyone know the price of anything measured in any currency? Isn’t the price of something decided at the point of exchange?

The main point I would like to contend is your underlined “one way”. I assume that you mean this is the only way for a currency to become established? While I am not normally a fan of idioms this one seems to ring excedingly true here, “there is more than one way to skin a cat”. I have read the r…

I think this is where the regression theorum comes into play. They know the value because of how much it was worth yesterday and they can extrapolate from there.

Is BitCoin the currency of the future?

Economics Economics Questions

filc March 16, 2011, 7:09pm 109

How do those people know how much a loaf of bread costs in bit coin currency?

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Is BitCoin the currency of the future?

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