Quote from: trentzb on May 17, 2011, 02:53:17 PM

Quote from: simme101 on May 17, 2011, 02:37:30 PM

Also, if bitcoins cannot be tied to a real currency, how would you know the value of it? How could anyone decide on what the value is without an exchange?

Why do you need to "tie" bitcoins to an alternate currency? This is an issue that is hard to overcome and wrap your head around and yes I fall for it sometimes too. The value of a bitcoin should never be based on some other currency although it almost always is. You need to look at the value of a bitcoin because you can trade it for some good or service directly without exchanging it for another currency. Once you can trade bitcoins for enough goods or services that you can live your life without participating in another currency then Bitcoin has won.

Good point. But how would you decide the value? Would that be up to each individual trader or what? Clearly this will not work in a global environment...