Comment: Again

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In reply to comment: Certainly not trying to be devious (see in situ)


You need to read Mises to understand that idle talk about TOTALS and averages is good for those economists who write formulas with aggregates, elasticity curves and velocity of circulation. In real world, you start from concrete context. Government determines what currency is accepted as taxes and how new money is introduced (via private or public central bank or via new gold excavation only.) Then the economic law starts working: bad money drives good money out of circulation. Belief in bitcoins is out of sheer hope that other people will keep on buying bitcoins. While government FIAT is backed by government force (reality) and gold by its jewelry value, bitcoins are backed by belief. So idle talk is good, but I thought we can do better.