[cryptography] Digital cash in the news...

Eugen Leitl eugen at leitl.org
Sat Jun 11 07:01:13 EDT 2011


On Sat, Jun 11, 2011 at 03:58:07PM +1200, Peter Gutmann wrote:
> "John Levine" <johnl at iecc.com> writes:
> 
> >I wouldn't call bitcoins digital cash.  They're more like digital tulip bulbs, 
> 
> Finally an analogy I can use to explain bitcoin to the masses (well, assuming 
> they know about the tulip mania).  I've been using Bartercard, which is a good 
> analogy but somewhat limited in international recognition.

Tulips were an investment bubble, not means of payment. People are so
quick to trust alternative local currencies and digital currencies 
because the official currencies have issues with being gamed (e.g. 
built-in inflation tax).

For Bitcoin & Co to be usable e.g. in online transcations it doesn't
have to be tradeable with real currencies. The reason it's risen to
be, and so quickly, is merely due to a large demand. Now that people
know the demand is fillable, there will be alternatives, particularly,
if Bitcoin is attacked.



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