satoshi nakamoto is too smart to repeat these fallacies:
...the online gambling industry which was, by the way, pumping billions of dollars into a struggling U.S. economy. ...
pumping billions of dollars? shuffling billions of dollars. which doesn't add any real production.
...Some would argue that Bitcoin is nothing more than an unregulated, private fiat currency backed by nothing. I would argue much differently. Fiat currencies have, to this point, always been issued by monopolistic, bureaucratic governments. Even when those currencies were backed by gold a policy that all but the rarest governments abolished decades ago the supplies of such currencies were still subject to the whimsical decisions of only a few. More often than not, the currencies represented mounds of debt, and destructive monetary policies that kept up the illusory trend of growing asset prices through mild inflation.
it is unregulated and backed by nothing.
... as the demand for Bitcoins increases, it will appreciate in value making it a more realistic and accurate deflationary currency. In other words, Bitcoin is finite, and as demand grows, so will its value. And because it is decentralized, this means every Bitcoin is worth exactly what two interested parties agree upon, at the time of the exchange. The currency is owned only by the person who possesses it there is no bureaucratic third-party government participating in the transaction by manipulating the supply. And what that means is that every single Bitcoin is backed by the assets and/or debt of every single participant in the market. That does not sound like a fiat currency to me.
deflationary? the supply increases. it is not deflationary, except from the perspective of a mind steeped in excessive inflation. but he does get valuation correct in this paragraph.