BitCoin

A bunch of people are freaking out about one of the BitCoin exchanges collapsing. The thing is, it is the exchange that failed., not the currency.

Someone said this exchange had simply been double selling BitCoins which is simple theft. If that is indeed what happened here, it has little to do with BitCoins themselves. The exact same thing could happen with dollars.

All currency is based on trust. All currency is based on promis. They are called promissory notes for a reason. All currency is just someone saying I promise to pay the value of this currency in some way or another. This is where gold and silver notes came in back in the day. No more. You cannot walk up to the U. S. government and demand some other kind of valuable clutter lying around. Those days are long gone.

The economists keep saying BitCoins are not real money. They are strings of data that are difficult to fake and the money money comes in only that there is a system in place to track who has what string of data. Well, that sounds a lot like ... money to me.

The reason dollars say “In God we trust.” is because if they said “Look this is all bullshit, but you can get a burger with this if you play your cards right.” no one would buy in.

Gold has no value when there is no food or water to buy.