Quote from: JoelKatz on September 05, 2012, 12:04:45 PM

Quote from: ChupacabraHunter on September 04, 2012, 06:32:38 PM

Please help me understand/explain to an economist friend of mine...

He argues that Bitcoins have no chance in global success because a this system be used to create credit.

Bitcoins cannot be used to leverage. --> You cannot use Bitcoins to create credit. ---> It can't replace existing credit already created by the current system.

For Bitcoins to be successful, it has to be able to replace the existing debt!

Please help me:

Where is he right/wrong?

He's wrong because I can owe you 100 bitcoins without having 100 bitcoins. Heck, I can owe you 25 million bitcoins even though 25 million bitcoins will never be in existence at the same time.

Bingo... JoelKatz scores again.

Bitcoins credit can exist just fine. I've made loans, and received loans, both with interest, and both paid back. Guess what... it worked!