Quote from: JoelKatz on June 16, 2014, 04:27:21 PM

Quote from: DistributedBUZZ on June 16, 2014, 02:08:04 AM

Ripple requires trust
Bitcoin requires no trust

Every system requires trust. The most obvious trust required with Bitcoin is that you trust that 51% of the mining power won't get together and agree to refuse to build on any blocks that include your transactions.

+1 every trade requires trust of some level without exception, but you can not trust the scarcity model it always leads to centralization and control.

http://www.veooz.com/photos/rH7iMre.html

Two Kinds of Money

1.The Scarcity Model: A single uniform quantity in limited supply made valuable by its own scarcity.
In other words, the value of this type of money depends on the supply of, and demand for, the money commodity itself. Conventional definitions of money define money only in terms of this model, a "medium of exchange". Examples are: cowries, gold and silver, fiat cash and coins, bank credit, and now, in the model's purest and most spectacularly speculative form, Bitcoin.

2. The Abundance Model. A promise of something specific from someone specific made valuable by its redemption in real production. The value of this type of money is defined by the promised redemption in goods and/or services. As such, this type of money is promises of an indefinite number of non-uniform commodities in indefinite supply and, unlike the limited quantity "coin" concept of money, the total quantity of these credits in circulation does not affect their value, because the value of a credit is defined by what its issuer will redeem it for in real goods and/or services. Examples are: business-to-business barter credits, customer rewards, travel points, discount coupons, mutual credit systems.