OpenRuby.com

07 Jan '13, 10am

The Importance of Bitcoin, a Perspective

As an alternative currency geek, I’d add the criticism that you can only engage in Bitcoin-denominated exchange if you’ve already obtained Bitcoins from previous transactions. This is definitely a downside, compared with the kinds of “mutual credit clearing networks” proposed by Tom Greco. Greco’s mutual credit isn’t a store of value from past transactions — just a measure of value for denominating exchanges of present or future goods and services. The backing comes entirely from the goods and services themselves. Like the many local barter networks that flourished during the Depression, mutual credit is a system for facilitating exchange even when there’s “no money.”

Full article: http://www.catalysthouse.net/the-importance-of-bitcoin/

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