One difference to note:
USD, like other currencies, are backed by the US Gov't
USD, like other currencies, are backed by the US Gov't
Topic: USD *is* a virtual currency - page 2. (Read 2842 times)
Actually the Government isn't backing shit. The USD is backed by Debt, meaning your tax dollars. All the Government is doing is holding a gun to your head to make sure you pay the bill. Pay the bill, while they spend the money ofcourse.
Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
Exactly. When you deposit $1,000 in the bank, they lock your $1,000 in the vault. They pay you interest out of the goodness of their hearts.Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
Are you visiting from the 1800s? lol
But you understand why there is vastly more risk in Bitcoins than USD, right? For every risk to the USD there is one thing going for it: it is accepted almost everywhere that your audience goes to.
Bitcoin has its risks, but the dollar has guaranteed devaluation.
Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
LOL...I'm pretty sure this was a joke people. And a good one!
Really? I highly doubt it was a joke, the guy who pointed out http://en.wikipedia.org/wiki/Fractional_reserve_banking was smart to do so. Only a very slim percentage of people understand how modern banking functions.
Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
LOL...I'm pretty sure this was a joke people. And a good one!
The metal in a US nickel is currently worth more than its face value. But no, there are not enough coins to back all the paper and electronic dollars out there.
One difference to note:
USD, like other currencies, are backed by the US Gov't
USD, like other currencies, are backed by the US Gov't
Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
Wat?
Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
This is extremely incorrect. Unfortunately, it's what a lot of people believe...
You could start reading here: http://en.wikipedia.org/wiki/Fractional_reserve_banking
Im pretty sure banks have whatever amount of currency they got somewhere as "real" currency. Coins etc.
But you understand why there is vastly more risk in Bitcoins than USD, right? For every risk to the USD there is one thing going for it: it is accepted almost everywhere that your audience goes to.
I encounter a lot of people that are skeptical that a virtual currency could work. This is a very odd position for someone to take because the USD is a virtual currency (and clearly has worked to a degree for quite some time). Most people keep their savings in bank accounts, which are nothing but book entries in a database on a computer system. The banks themselves have accounts at the FED or other banks that are also nothing more than database entries in a computer system. The difference is that this virtual system is rife with a haphazard design cobbled together over the the years and full of vulnerabilities, whereas bitcoin was designed from the ground up to be secure and trustworthy (time will tell whether it meets this goal).
I point this out to people because it sometimes dramatically changes their perception of bitcoin. They are then basically left with the question of whether a currency not backed by any gov't or institution will work...and of course, for that you have the example of gold.
I point this out to people because it sometimes dramatically changes their perception of bitcoin. They are then basically left with the question of whether a currency not backed by any gov't or institution will work...and of course, for that you have the example of gold.
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