Quote from: hazek on January 21, 2013, 09:37:07 AM

Oh I see, the problem is actually that you don't understand what the meaning of "being backed by" is.. Tell me, can I cash in my 1btc or 1gram of gold and get utility as ideal medium of exchange out of them? And how does utility as ideal medium of exchange look like?

valued properties != backing, mkay?

Sorry, my mistake. It was Jutarul who is half right when he says Bitcoin doesn't have backing (because like gold, Bitcoin is backed purely by its own utility).

OTOH you are half wrong for

1) not understanding the subtle circular nature of an Aristotelian good money's self-backing properties, and

2) screaming at me in rage-font (for the offense of trying to teach you something).

Thus, you're completely wrong to assert (in big bossy letters) that "valued properties != backing," ignoring the fact that backing may be external or internal.

For X to be backed by Y, X must be guaranteed to be convertible to Y.

E.G. A gold standard, where a currency is guaranteed convertible to gold by the issuer of the currency.

For Z to be backed by Z, Z must inherently posses valued properties.

E.G. Monetary PMs and Bitcoin.

Your silly question ("can I cash in my 1btc or 1gram of gold and get utility as ideal medium of exchange out of them?") amply demonstrates your lack of understanding the crucial distinction between extrinsic backing (via an artificial arrangement) versus intrinsic backing (via inseparable quintessential properties).

Your other silly question is not even a proper sentence. Do try and proofread, especially when posting in a fit of pique. Wink

And don't be so narrow-minded when it comes to the meanings of words. Your linguistic rigidity is the source of your confusion.

Words have radial definitions, especially phrases (such as "backed by") based on flexible spatial metaphors.