3 votes

Screw Bitcoin...could we start our own currency?

So i'm sitting here thinking...

the main issue with Bitcoin is it has no true worth. It's fiat just like a Federal Reserve Note. The only upside to it is that it's digital & can not be taxed or tracked.

Could we create a currency that like Bitcoin is digital...yet is backed by an actual metal like silver? Let's say you called it AgC. And all of the silver that backs the currency is kept in a warehouse & you could redeem your digital AgC anytime for the actual worth in silver.

Good idea? Worth exploring more?

What do you guys think?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

can be lent out

Whats to stop the person in possession of the silver reserves from lending out the silver if they figure less than 10% of the coin ever comes in for redemption at any given time. A run on agcoin would yield the same result as a run on the banks....people find out there is nothing there.

With bitcoin there is no reserve but no one is being lied to like with fiat.

________________________________________

A friend has 15 pounds of copper pennies

I've got a few silver dimes. They bought twice as many dollars a month ago. I'll wait.

http://www.coinflation.com/silver_coin_values.html

Free includes debt-free!

The problem I see ...

... is that silver prices can be manipulated. If you use a basket of commodities (gold, silver, oil, government currencies, whatever), then where do you store it?

If you don't have the guns to defend your stash, then someone (gov't) with guns might just take it.

Being digital is brilliant because the storage issue is moot.

But as we see now, governments will try to tax it, making anonymity more difficult.

Digital seems more likely to be the future.

If we could repeal the law that gives the Federal Reserve monopoly power, then all sorts of possibilities would be found.

Also, not ALL banks in the USA belong to the FR. State banks can choose to, but many do not. I wonder if that angle would be a way to go, with a state bank using gold/silver to back their own certificates of deposit, as an example, and make those CD's "bearer notes."

That would then be a de facto alternative currency, and the bank(s) could hold their gold/silver deposits in multiple places throughout the world.

They could also add a digital layer to make the best of all worlds. But if its going to be backed by something, you gotta figure out where those assets will be stored.

"Bitcoin has no true worth"

"Bitcoin has no true worth"

I take issue with this statement. Something is "worth" whatever anyone else is willing to exchange for it.

I think you meant that Bitcoin has no "intrinsic value," which is true. Bitcoin's only purpose is to be a resilient currency. It has no industrial uses like Gold and Silver.

But, let's conduct a thought experiment: Is it really much different to give something a price tag which is far, far above and beyond its intrinsic value, e.g. gold? In both situations, one is paying (or exchanging) for much more than the commodity is "worth" in an industrial capacity.

And lastly, as others have pointed out, Bitcoin is not "fiat" because it is not given value by government edict. Too many people here think that "fiat" means "not backed by anything", just because most fiat currencies aren't! Common mistake, but I felt the need to clarify.

I Don't Understand Bitcoin

though I keep trying to. But I DO understand that if people BELIEVE something is valuable then it IS valuable. HUMANS decide what is valuable or not. If you had a bank account and someone changed the balance from 100.00 to 1000.00 electronically, does that mean you have 1000.00 in the bank? It does if everyone THINKS so. Is that how bitcoin works?

skippy

ehhhh

I wouldn't quite use that analogy. No one is changing balances in the Bitcoin world...

It's like you have $10, and right now, $10 can buy you a nice burrito at Chipotle. But then, let's say that people suddenly start valuing dollars much, much more than they currently do. You still have $10, but now you can buy Chipotle for your entire family.

The magic of a deflationary currency. :)

Bitcoin is not a fiat

Bitcoin is not a fiat currency.

There's no place like home. There's no place like home.

There's no place like home.

It's semantics. Both BitCon and Fiat money represent nothing of value. It's doesn't really matter that you keep screaming 'BitCoin is not fiat'. That won't change the fact that it's a poker chip that represents nothing value.

You want people to invest value in BitCoin because it's a pyramid scam and you see people as suckers here to fuel the scam. You hope to profit at another persons expense.

"Nothing" always finds its true value, and "nothing" is bad way to store and create value. Eventually those who try to profit off nothing get exposed as con-men selling a pyramid scam.

Please, just get over it before it destroys you.

Sell your BitCrap and give the proceeds to charity. Then finish up this whole sordid business by apologizing to those you invited into a pyramid scam. They will remember.

Just be done with it...

Bitcoin has value

It's a network of 22 thousand pc's resulting in 9 billion dollars worth of processing power. It also creates value w payment system free of credit processing fees. Bitcoin gets rid go the double entry book keeping ponzi within our current monetary system.

This gives Bitcoin inherent value beyond fiat.

Bitcoin does not replace or threaten Gold as money. Do not use it for savings or investment. Use it to buy and sell good services.

Frankly the ignorance on this board by so many (when it comes to Bitcoin) is embarrassing.

The Red Coats are coming!

All mining worthless poker chips...

"It's a network of 22 thousand pc's resulting in 9 billion dollars worth of processing power."

All mining worthless poker chips... That's why I endorse ByteTurd rather than BitCoin. It's backed up by something of value.

BitCoin is a scam with guys like you desperately trying to convince people that poker chips have value. You want people to buy poker chips, because you want to profit off them purchasing nothing. You want something from nothing and there's no end to the scams con-men will try to get people to accept poker chips as money.

"Bitcoin does not replace or threaten Gold as money. Do not use it for savings or investment. Use it to buy and sell good services."

You're darn right BitCon is no threat to real money, nor would I use it to save or invest. I don't invest in pyramid scams, and I don't try and buy goods and services with poker chips. It would be an insult to the person I'm dealing with. There ARE many people willing to invest vast sums of wealth to get you to accept that poker chips can be used as money, yet I want NOTHING to do with them.

Don't even bother with me. I get it. I understand BitCoin just fine.

I'll be around telling people that you're a conman, and they should have nothing to do with you and BitCoin unless they're interested in profiting off a scam.

I'll do everything I can to get BitCoin destroyed as a ponzi scheme, and I would suggest people cash out their BitCrap and donate the proceeds to charity before it's too late. Don't go down being remembered as somebody selling a scam to their friends and family.

Don't let a petty pyramid scam destroy you. It's not worth it. Just put the whole thing behind you. You'll feel much better about it.

He doesn't understand what

He doesn't understand what you are talking about. All he knows is that the youtube channel he listens to says Bitcoin is a fiat ponzi scheme and so he rants endlessly on every Bitcoin topic about it.

lol, excatly.

lol, excatly. I've heard Chris Duane's (TruthNeverTold) uninformed YouTube videos, and then I get to enjoy the SAME EXACT WORDS coming out of this guy's mouth. Sometimes I wonder if it's Chris Duane himself!

Like I said; Conman Kung Fu. "He doesn't uderstand!"

I understand just fine, that's the problem, and it always ends the same way.

That which starts from nothing, creates nothing, and represents nothing of value, ends up finding it's true value once again; nothing...

The only question is, how much of your honor and credibility will that profit cost you? How long can you go on pretending poker chips have value and can be used as money. How much value can be extracted from the scam before you run out of suckers to fuel your gains.

Not much longer in my opinion.

Tick tock, tick tock.

It is a currency, it is

It is a currency, it is nothing like a poker chip. It is nothing like a scam. why do you relentlessly plaster BS on every topic related to BTC? Its as if you have been employed to discredit it.

The problem is not in its FIAT nature

but in other things. 1) bad money drives good money out of circulation (meaning as long as bad currency is convertable into good currency and equally accepted, it drives good currency out - people keep good currency as a store value, FIAT or gold.) 2) power of government force - if bitcoins were required as the only payment for government taxes, they would be to stay.

Why no front page action for this?

Are we too busy trying to pump up a BitCon ponzi scheme and sell poker chips as money?

It's sad, because BitCoin would be great if it represented something of value. It would be great if people were willing to absorb the cost of maintaining a legitimate storehouse of value voluntarily through use. Funding a reserve in BitCoin could be accomplished by a voluntary tax on each transaction.

Yet... People always want something for nothing, and that's really the driving force behind BitCoin; a scam. People want to profit off it rather than create a sound currency.

A true system of digital currency would be outlawed though, unlike BitCoin. (BTW even FauxNews* is now pushing the BitCon scam.)

I think it's a great idea gizzy. It could be the 21st century equivalent of a no loan Depository backed up by Gold and utilized through a sound digital currency. Now THAT I could support.

Why Do You Keep Using Poker Chips

as an example? Can't you cash in poker chips for money? AND ironically the money you cash in poker chips for is FIAT isn't it? We should all laugh at ourselves.

skippy

I personally don't make one

I personally don't make one penny more or less if Bitcoin fails or succeeds, but I don't believe it falls under the label of Ponzi scheme.

Ripple, Bitcoin and the Future of Open Money

Up until now Bitcoin has been, by far, the most powerful contender in the crypto-currency market. Other alternative coins, such as Namecoin, Solidcoin and Litecoin, have arisen to offer various modifications on the core Bitcoin concept but none have achieved anything close to Bitcoin’s level of success. Litecoin is perhaps the most prominent out of all the alternatives, rumor has it that Litecoin will be tradable on Mt.Gox soon but so far the overwhelming majority of merchants – and merchant platforms, for that matter – have seen no reason to pay attention to them. Now, that may finally change with decentralized cryptocurrency’s new kid on the block: Ripple.

Ripple already has clear advantages over bitcoin. Everybody using a Ripple account will have some Ripples in their account, just to get them on the system, and there will always be people making a market, converting Ripples to real currency and back again. The good news, however, is that Ripples are not (fingers crossed) going to become speculative investment vehicles, in the way that bitcoins are. I hope it works, and I hope that the number of gateways into the system will soon expand from the current list of relatively obscure sites like Bitstamp and WeExchange.

http://goo.gl/YADRo

==============
unSpy.info

Ripple is centralized

Ripple is centralized electronic currency and advantages you are mentioning may be outweighed by other disadvantages, depending from your point of view.

Competition, however, is surely a good thing for only the free markets will decide the success. Ripple is a relative oldimer, a welcome addition, just as the latest addition, currency #177, YoYoCoin.

Engage in Secure Exchange

Ripple

Ripple just recently went open source, which is a positive step, but it's still centralized. I don't know if there's really an alt called yoyocoin, but ripple has a market cap of 2.8 billion putting it in second place behind bitcoin at 10.4 billion and well ahead of Litecoin at 0.6 billion, and waaay ahead of the hundreds of other alt coins out there.

When I was young Ripple was a brand of cheap, nasty fortified wine. That's what I think of when I hear the name.

I already have my own currency.

My currency is called Quatloos.

There are 1000 Quatloos per gram of silver.

Are you a glowing brain in a

Are you a glowing brain in a jar? :)

Oh and BTW read up on e-gold,

Oh and BTW read up on e-gold, the digital gold backed currency that was raided by the feds and shut down. Any new digital currency that depends on physical assets must have a physical location that is actively audited. This means there is a place somewhere the feds can storm into and shut down. Bitcoin is intentionally decentralized to prevent this.

- Grow Mushrooms at Home
http://subfarms.com

"Our own" currency? Who do

"Our own" currency? Who do you think owns bitcoin? We do. And... Nobody does. That is the beauty of it.

Fiat: "a command or act of will that creates something without or as if without further effort."

Bit coin is not fiat. It is finite and cannot arbitrarily be created like fiat currency.

In fact one day if we figure out how to synthesize gold, it too could become fiat. Bitcoin will not.

- Grow Mushrooms at Home
http://subfarms.com

Do it

Do it... that's all I have to say.

Bitcoin is not fiat!

Does Bitcoin derive it's value by government decree?

Absolutely not!

Where does Bitcoin's value come from?

Like Gold and all other goods on the market, Bitcoin's value is subjective.

It has value because people have demonstrated preference for it, it has value because people have assigned it value.

While I agree that as Bitcoin is not a physical commodity like Gold or Silver, that I have doubts about it.

But, I am not wishing ill will towards it, I want it to succeed just as you should want it to succeed,.

It is a competing currency that allows people to get out of the US dollar and keep their hard earned money out of the prying eyes of the State, Bitcoin is a good thing!

All the angry and aggressive comments towards Bitcoin suggest that many of you simply fear it because you don't understand it.

You don't have to get into Bitcoin if you don't want and no one is forcing you to use it, Bitcoin hasn't done anything to you, it is not evil, be happy that there is new medium of exchange challenging the dollar's supremacy on the web.

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

Not sure who would have down

Not sure who would have down voted that. Well said.

- Grow Mushrooms at Home
http://subfarms.com

I already created a new currency

I already created a new currency: The Barackazillion!

Barackazillion.com (watch video)

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

What Do I think?

I think your first assertion that Bitcoins is FIAT is complete Ignorance.

I think your Idea about a digital currency backed by precious metals is awesome... Except so many before you have thought of it and tried.

If this were possible we wouldn't have seen Bitcoins come to the popularity it has.

As Fiat Currency's lose more and more of their value.. Look to The Govts around the world to become increasingly tyrannical. How would you feel having your Gold and Silver wealth stored in a vault that the Government has it's sights set on...? and that's the Problem, A gold and Silver backed Digital Currency requires centralization and in todays environment that is risky business.

So Bitcoins is King right now... It's Digital Gold in a Digital World...