February 27, 2011

Alternative Currency: BitCoin

For more info: BitCoin.org

And if you think this is totally insane, check out this episode of This American Life:

This American Life: The Invention of Money

I'm still suspicious of it, only because I haven't had a chance to think it all the way through yet. I'll tell you what I do like about it:

*It's decentralized, meaning that bankers cannot control it. Because there are no bankers.

*The money supply supposedly cannot be fiddled with. It will increase steadily over time, until it reaches a cap. Which means that it is not subject to inflation or deflation.

* It's not backed by anything other than trust, much like our own fiat money supply, except credit doesn't need to be artificially borrowed from Goldman Sachs, er *cough* I mean, the New York Federal Reserve Bank... which means that the value will not fluctuate based on the availability of some arbitrary mineral resource like gold or silver.