Quote from: ElectricMucus on June 02, 2013, 03:09:35 PM

Quote from: ihsotas on May 23, 2013, 07:07:32 PM

Quote from: bitcoinbear on May 23, 2013, 03:59:06 PM

Quote from: ElectricMucus on May 22, 2013, 02:04:19 AM

Quote from: ihsotas on May 22, 2013, 01:20:23 AM

Even cash is debt; that's why they are Federal Reserve Notes, representing an IOU from the government to you.

And Bitcoin, big surprise is pegged to them. It's a closed system folks.

Could you go into more detail on how bitcoins are pegged to USD? I look at bitcoincharts.com and I see that the exchange rate between the two floats around with great volatility, just about as far from pegged as one can be!

I would be very surprised if he knew what a 'currency peg', or a 'closed financial system' was.

Ok lets pretend...
I have no idea, you explain it.

Ok, this is going a bit off-topic...

A currency peg is when the currency issuer sets a certain amount of some commodity or other currency for which the issued currency can be traded, usually by making a law concurrent to issuing the currency. So if your currency is pegged to gold, there is a certain amount of gold for which you will redeem units of your currency. Or if your currency is pegged to another currency, there is a decreed exchange rate for which they can be traded.

Bitcoins are most certainly not pegged to anything.