Hello all,

I'd like to begin my first post by saying that I'm thrilled to discover that so many people are working on a new monetary system that avoids the fraud of fractional reserve banking and a debt based monetary system.

After spending the last few days studying bitcoin, it appears that for a fully functioning bitcoin economy to develop vendors will be needed to supply goods and services. My question is: what will attract vendors to bitcoin?

Right now it appears to me that most transactions (if not all) are of the form: fiat currency -> bitcoin -> fiat currency. By this I mean the alpaca sock vendor has not truly adopted bitcoin, but is rather using them as a transfer medium. The buyer of socks is (forget mining for the moment) converting fiat to bitcoin then purchasing the socks. The vendor accepts Bitcoin but then immediately pays out expenses (labour, fuel, materials) in fiat. A fully functioning bitcoin economy will require the consumer to be paid in bitcoin and the vendor to pay expenses in bitcoin. The sock vendor needs suppliers that will accept bitcoins. The consumer needs an employer that pays in bitcoin. Governments get the system created by creating laws that people blindly follow.

How does this economy get bootstrapped?

Ralisse