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Old 05-16-2011, 06:56 PM   #20
Mike Wevrick
RIP 1/19/64 - 7/23/11
Scooby Guru
Member#: 24654
Join Date: Sep 2002
Chapter/Region: NESIC
1957 Taggart Comet


So initially you can "mine" bitcoins based on how much computing power you have, but after all 21 million have been issued they can only be used as a medium of exchange. Their "value" will be entirely fiat (not based on any real economic good) and thus will fluctuate entirely according to whether other nerds are willing to accept them or not. It seems as if illiquidity could be serious problem, eg

"DanboTheManbo Dan Tren
I'm desperate to shift the 867 #bitcoin I have - who'll give me $6700 for em?"
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