Bitcoin Bravada My Facebook reply to how great Bitcoin is: What backs the cotton dollar? Us govt debt. What backs Bitcoin? An electronic encryption. What backs gold? Itself! Bitcoin is digital fiat. The fed itself has put its own digital fiat on “high” priority. Ask yourself what happens to all the other digital fiat currencies when sovereign nations start their own? I don’t know. But I’m guessing they outlaw them some how. Anyway, good luck, you understand fiat is bad, I doubt digital fiat is the answer myself.
Bitcoin Promoter Reply: Bitcoin is not digital fiat at all. Once you own Bitcoin you will never go back to Government controlled money. We tried that. New game. New players.
My reply: Bitcoin is not govt controlled? Well if not why do they tax it? For the most part I agree the govt can not print it to gazillions. I disagree with it is not digital fiat. If I have an emp, electrical failure, encryption hack(inevitable in my opinion) or it goes to zero. The fact that it’s “created” with electricity, and “protected” by encryption does not give it any backing, any value ... aka digital fiat. Bitcoin derives it’s only value thru speculation and the fact that it’s not currently govt controlled (as far as production and regulation). Due to the later I believe it’s days are numbered. We are “rapidly” approaching a time when the public will be brutally “educated” as to what constitutes a valid “backed” currency!
In my opinion, sound money should be 1. Not controlled or regulated by sovereign countries and 2 Be backed by something of value. Bitcoin only solves half of that problem in my mind. Tread carefully with digital fiat currencies like Bitcoin.