Originally Posted by holograph

I'll start from the end.

I'll ask similar question: value of dollar is based on what? how do you attach to or know value of anything? money ultimately do not have any value on their own, except what it costs to print them. they are just made as exchange units so when you sell or buy something you can do that easily based on value of things you are trading them for. What is your paper money backed with? If your country defaults tomorrow do you know what will happen then with the value of your paper money? you could effectively wipe your ass with it. How can you be sure your country is not going to default tomorrow or in the future or that you will get your social security benefits and pension? look at Zimbabwean dollars they inflated so much that no one wanted to accept them anymore and everyone over there carried trillions of those in their pocket, just piece of paper.

Value of Bitcoins is that it is modern exchange/trading vehicle, very secure and effective to transact with. Value for such novice concept as bitcoin is is what people are willing to give them for and what people are willing to part them for same as any other currency (except ultimately it is not devalued by printing more into existence). Sometime last year bitcoins were trading at $0.008/BTC, current rate $13.7/BTC; as demand grows their value increases because it is scarce item and there will be finite number of them ever produced (upto 21M) but the beauty of it is that if demand outgrow available supply, each bitcoin can be fractured up to 8 decimal points 0.00000001 (giving you a possibility of very very large pool of reserve to go around and never be in short supply for at least few hundred if not thousand years in to the future, because it could be possible to have and trade at rates such as 0.0001BTC = $1 or 0.00000001BTC = $1, etc). and if 8 decimals isn't enough it could be extended to 16 decimals or any other number. Good thing that no one can print them more and inject fake bitcoins in to the network - they will be rejected. there is one vulnerability through owning >50% hashing power of the network, then you could fork the chain and pump network with fake bitcoins, but with such power it will be more profitable to mine real btc than trying to attack it plus as network hashing rate grows it is less and less of a threat.


> and for what is bitcoint client used? explain to understand it, thanks!

Bitcoin client is a wallet application where you keep your bitcoins and have ability to send and receive


> you really think bitcoin will be option to pay your gas and grocery?

To be honest I don't think it will be available in immediate future in every grocery and gas station, but things are rapidly developing within bitcoin community, there are already alpha solutions deployed to be able to make transactions from Android based phones. People are looking for ways to send and receive bitcoins from phone to phone and offline - and when I say "looking" i don't mean reading internets but actually are working on finding/developing such solutions. It may take a long time for wide acceptance but it also has a possibility to skyrocket at a very fast pace.

From what i read and learned about Bitcoins, it is brilliant and elegant solution to today's fiat monetary problems.


Hopefully you will read my this reply as it seems you have totally ignored my answers to you in some other threads about bitcoins.

Originally Posted by holograph

You think any new currency can be instantly injected into the world and gain wide acceptance? If i'm not mistaken, you are from EU, right? where you old enough to remember when Euros were introduced? tell me please didn't you or your parents used to convert back and forth Euros to your native currency because no one knew what the value of Euros was at that time? Once you/your parents started seeing prices in stores in Euros everywhere you got comfortable dealing with Euros without calculating every time what they worth or how much is product worth with them - you started thinking in Euros. It takes time to adjust and see them used commonly for that. Than they can live on their own without comparing with other currencies.

Of course bitcoins will be traded with and compared against dollar and other currencies. It will be happening for a long time because right now they are not widely used, but mostly traded at exchanges with other currencies by traders, like on FOREX. Today even if you receive payment in Bitcoins you will need to convert them to buy things like food or pay your rent, it doesn't mean they don't hold any value on their own even if you don't see it.

Originally Posted by holograph

Should I trust the guy with printing press to pump so much money so they can steal all your wealth by devaluing money already printed and then take your property because you won't be able to afford it and then your ass will be owned by the man by the great debt that is laid upon your and your future generations. so tell me what is the value of your so called real money?

Originally Posted by holograph

@seeandsee, when you wake up I hope you give a brief moment to explain where do real money get their value from.