27 May '13, 6am
10 BTC Challenge for Praxeological Proof of Economic Cause and Effect #bitcoin
I am re-posting this bounty in the Economics section to attract people that may not follow the project-development blog where I am attempting to find someone to convince me that my strategy for creating an issuer-less crypto-currency that tracks the value of any other economic asset (gold/silver/dollars/etc) would break down in the market. If the crypto-USD fails to have any 'meaning' relative to paper-USD then my system fails. If the crypto-USD does have meaning that tracks paper-USD, then I will have created the first interest-paying bank with 0 counter party risk that can take deposits in any currency. This woud be a major breakthrough. However, I need someone to double / tripple check my reasoning and attempt to convince me that the prices would not behave as I believe they would. If someone could explain via an austrian-based praxeological proof how the price of crypt...