Sure
In NZ, we have reserves, gold. You guys have reserves, gold. Other assets as well. These assets back up your notes. The Govt guarantees that they will honour them. If you gave me a greenback, I know I can get value from it, as its legal tender, it is worth its value and its backed up by real assets.
Now, if I made some bitcoins on my computer, or if I printed out my banknotes (not forgeries) they are bits of paper. If soemone gave you a car in exchange for your bitcoins or Tony Notes, thats great, but you have no guarantee. If the dude that gave you his car, came to me with his Tony Notes, I have no money, so these notes are valueless. In Germany they just printed out money left right and centre. The basis of that money, reserves was not changed, they just printed more notes. So instead of taking a purse of cash to the market and a wheelbarrow to bring back veges, they took a barrow of cash to buy a small amount of veges
Money Supply is another issue, thats controlled to reduce inflation. Adding bitcoins or any new currency upsets the money supply
From: "David Smith david.smith.14916@gmail.com [iPad]" <iPad@yahoogroups.com>
To: iPad@yahoogroups.com
Sent: Tuesday, 29 December 2015 10:14 AM
Subject: Re: [iPad] How Apple's Trojan horse will eat the credit card industry
Would you expand on that?
As an aside to the conversation I would just like to point out that is all the greenbacks in your wallet are. They are Federal Reserve NOTES, not actual money.
---In iPad@yahoogroups.com, <tdale@...> wrote :, it is money that has no real value, just the hope that others give it of they accept it.
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Posted by: Tony <tdale@xtra.co.nz>
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