Quote from: ShortCoins on December 14, 2017, 05:01:32 PM

Nah I don't think fiat money is backed by much of anything. When I say money represents a "future claim" on goods and services I mean the literal definition of a claim: a demand or request for something considered one's due. Which is exactly what it is.

So instead of exchanging product A for service B we exchange product A for money and then buy service B

This allows us to transfer assets without a direct trade through the use of a medium (money)

You seem to be suggesting that money be a credit system in favor of the holder of money, which can be used as a demand or request against arbitrary persons for something considered ones due. Is that an accurate characterization of what you mean?

Quote from: ShortCoins on December 14, 2017, 05:01:32 PM

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The cost of mining rises and falls because of the change in Bitcoin's value, not the other way around.

Wrong. Each BTC that is mined increases the difficulty of the next computation. In order to solve a more difficult equation, more electricity is required. Therefore, Bitcoin increases in value when mining costs rise. The price needs to rise in order to cover the losses of the miners (which they receive in direct payment of BTC).

Real Life Example: If cost of goods sold go up, so should your sale price

No, you are 100% incorrect. You clearly do not understand how mining works, or what it does. I just wrote you an explanation of the purpose of mining on one of these other threads you spawned; I suggest you read that first. Further than that:

Incorrect: Each BTC that is mined increases the difficulty of the next computation. No. The difficulty increases based on a calculation of how quickly the network is generating blocks. There is a 10-minute generation target; every 2016 blocks (intended to be about every two weeks), the difficulty is raised or lowered based exclusively on whether blocks were taking shorter or longer than 10 minutes, on average. It has absolutely nothing to do with how many BTC are mined. The number of BTC mined is set by a schedule by block height. This is basic stuffyou should a beginner-level introduction to how Bitcoin works, so as to avoid such mistakes.