26 Dec '12, 10pm

This is a wonderful article about the nature of money and Bitcoin: "It's all Monopoly Money Now" @sangaman

This is a wonderful article about the nature of money and Bitcoin: "It's all Monopoly Money Now" @sangaman

Gold, silver, and notes that represent them have been used as currencies in human history because they were the best forms of currency known to man at the time. Suppose that you lived in a society where these were the most widely used and accepted forms of currencies. And suppose that, as in my Diablo II example, a person started making his own currency and this time called it “monopoly bucks.” These offered the same convenience that bank notes did but had no intrinsic value of their own and were not redeemable for anything that did. This person could also make more monopoly bucks whenever he felt like it. If he came up to you and offered you his monopoly bucks in exchange for your gold, silver, or other objects of value, wouldn’t you laugh him off just as you would the Diablo II player peddling his trinkets?

Full article: http://mcnallydp.wordpress.com/2012/12/25/its-all-monopol...

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