Quote from: DannyHamilton on December 06, 2012, 03:03:13 PM

Quote from: johnniewalker on December 06, 2012, 09:09:57 AM

Quote from: hazek on December 05, 2012, 11:51:54 AM

I'm sorry but I haven't the faintest what you are on about, your post isn't coherent enough to really convey anything. Better luck next time.

Alright, apparently I have to simplify it for you.
Before Eisenhower eliminated the Silver Standard, every $note represented a certain bit of silver. If you had $5 you could go to the bank and get $5 in silver (as in silver certificates).
Now, our (USA) currency is tied to NOTHING. Literally it is a piece of paper. What gives things value? Utility and scarceness. Obviously dollar bills don't have much utility. But they have a certain degree of rarity. However, the Fed Rsrv can print as much money as it wants, causing inflation and making $1 worth less.
Bottomline: only FINITE forms of currensy work (gold, silver, etc). Our money system is INFINITE and therefore gives way to inflation.
make more sense?

I understand your view of fiat. Others have this view as well. You may be right, you may be wrong (regarding your assertion that "only FINITE forms of currency work"), only time will tell.

What I don't understand is what you meant when you said: "First of all, the need to create Bitcoins. But even more than that-bitcoins are tied to the USD."

Didn't you know anything you can buy with money gets part of that money's money-ness infused in it?

It's a problem I often have with chairs. This chair I am in is so comfortable, but I'm dismayed that it is tied to the money I bought it with which greatly reduces it's chairy-ness.