[cryptography] Digital cash in the news...
danilo.gligoroski at gmail.com
Mon Jun 13 06:15:16 EDT 2011
Nicholas Bohm write:
> Now I find I can exchange a little over five bitcoins for
> a £50 Amazon gift certificate that Amazon seems happy to
> credit to my account.
I see the example of an institution (organization, company, entity, ...)
willing to happily credit the current value of *whatever currency* with
*concrete products (goods)* or *concrete services* is the best example how
and why *that currency* can become a trade tool for exchanging the goods as
well as services.
Your example is about two actors: Amazon and BitCoin, acting within small
amounts of goods, services and issued currency.
But there is another example with two other actors that are playing the
currency spiral game of trust with HUGE, HUGE amounts: I am talking about
China and the US Federal Reserve System. The amounts are in trillions of
dollars, issued by Federal Reserves, and are happily (oh, maybe lately not
that happily) accepted by China.
Now, instead of Amazon, if we start to see similar Chinese entities (but not
necessarily just Chinese, maybe some of the BRIC countries) that will be
happy to credit the BitCoins with concrete products and services, then
BitCoin as a trade tool for exchanging goods and services will probably
survive in the next period.
Or, seeing the latest Chinese-made crypto products like the latest ZUC
portfolio of crypto primitives for the new 4G standard, instead of BitCoin,
I expect to see a BitYuan.
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