Bitcoins - the future of money?

[harnett]

Unless you're a major tech geek or a regular patron of the shadowy computer underworld known as the dark web, you've probably never heard of – let alone used – Bitcoins. But below the "real" economy of legal tender and federal reserves, Bitcoins fuel a shadow economy that connects students, drug dealers, gamblers, dictators and anyone else who wants to pay for something without being traced. It has found a niche as the currency of internet vice, digital "pieces of eight" for modern-day pirates.

http://www.guardian.co.uk/business/2013/mar/04/bitcoin-currency-of-vice

[harnett]

I was wondering if Reg had used Bitcoins at all?  Or his fares?

[petagny]

Could a virtual bank take deposits in bitcoins and then make loans on the basis of these deposits? In this way, the money multiplier could solve the 'problem' of the fixed quantity of bitcoins.

[harnett]

I suspect not.  The fixed quantity is deliberate, promoting confidence.  As soon as the quantity increases then holders face possible devaluation.  Maybe worth investigating!!

[Reg]

Yeah I 'ave 'ad that Satoshi Nakomoto in me cab.  We 'ad a chat whilst I wuz taking 'im to a place called 'other things' (can't say where that is - client confidentiality 'an all that).  Anyway I told 'im bitcoins sounded too much like clipped coins for my taste so no I wouldn't ave nuffink to do wiv 'em, told 'im that's why we 'ave decis et tutatem on our pound coins to stop people nibbling off the nickel-brass - also told 'im the coin was called a Thatcher - hard, brassy and thinks it's a sovereign.

[harnett]

Duped mate - that Satoshi don't exist!