I've just written a new article about bitcoins

[coyledesign]

Basically I've just found out about bitcoins. But as I was learning I wrote this small article about them. I've noticed that there really isn't much of a community in the UK compared to elsewhere. I'd really like to see that changed.

Here's the article: http://coyledesign.co.uk/content/finally-real-virtual-currency-introducing-bitcoin

*shameless advertising*

All the offers on there are also available in bitcoins. Use the exchange rate of £3 to 1 BTC for now I'm currently writing a small PHP script to automatically change the currency from GBP to BTC on request from the user.

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[schnell]

This is where the bitcoin differs. It is a completely virtual currency. Not backed by any commodity it only exists in the cloud.

Bitcoins are backed by the power and investment needed to make them.

Otherwise, nice article.

[coyledesign]

Thanks I'll update the article to put that in

[Foxpup]

Don't put that in, he doesn't know what he's talking about. To say a currency is "backed" by something means that the issuer promises to exchange that currency for something at a certain exchange rate. eg, back when dollars were backed by gold, you could walk into any bank and exchange your dollars for actual gold. Bitcoins are not backed by the electricity or processing power used to create them, and as a matter of fact they're not backed by anything. Gold isn't backed by anything either, and neither is fiat money anymore. Bitcoins (and gold) have value because they are scarce (there's no way to produce more after the inital supply runs out) and because they are useful as a medium of exchange (you can buy things with them). That's it. They're not backed by anything nor do they have to be in order to be valuable.

[schnell]

Don't put that in, he doesn't know what he's talking about. To say a currency is "backed" by something means that the issuer promises to exchange that currency for something at a certain exchange rate. eg, back when dollars were backed by gold, you could walk into any bank and exchange your dollars for actual gold. Bitcoins are not backed by the electricity or processing power used to create them, and as a matter of fact they're not backed by anything. Gold isn't backed by anything either, and neither is fiat money anymore. Bitcoins (and gold) have value because they are scarce (there's no way to produce more after the inital supply runs out) and because they are useful as a medium of exchange (you can buy things with them). That's it. They're not backed by anything nor do they have to be in order to be valuable.

Yeah, but saying they arnt backed implys that they are unlimited.
Really they are backed by demand and as you said, scarcity.

[imanikin]

...
That's it. They're not backed by anything nor do they have to be in order to be valuable.

+1

[youngM]

I read soemthing about the price..
it works on a series of algorithoms
but dont ask me.. im just a newbie

[casascius]

Don't put that in, he doesn't know what he's talking about. To say a currency is "backed" by something means that the issuer promises to exchange that currency for something at a certain exchange rate. eg, back when dollars were backed by gold, you could walk into any bank and exchange your dollars for actual gold. Bitcoins are not backed by the electricity or processing power used to create them, and as a matter of fact they're not backed by anything. Gold isn't backed by anything either, and neither is fiat money anymore. Bitcoins (and gold) have value because they are scarce (there's no way to produce more after the inital supply runs out) and because they are useful as a medium of exchange (you can buy things with them). That's it. They're not backed by anything nor do they have to be in order to be valuable.

Yeah, but saying they arnt backed implys that they are unlimited.
Really they are backed by demand and as you said, scarcity.

No.  Saying they aren't backed means exactly what he said he means, which is not "unlimited".  If he wanted to say that they were "unlimited", he would have said that bitcoins are not "limited".  Backing has nothing to do with scarcity or demand.  Read his explanation once more.  Or do some research.

[Tesla13]

nice article, i like it!

[RandomQ]

Very Nice, keep up the good work.

[Andy First]

+1

[overtime]

Well done!

[Nyaaan]

Good article, but your advertising is still shameful, you just say it is shameless to make you feel better, but you are bad on the inside.

[realnowhereman]

Good article, but your advertising is still shameful, you just say it is shameless to make you feel better, but you are bad on the inside.

If I'm a barber and I write "barber" on a sign outside my shop is that shameful?  If I write it on my website is it shameful?  If I wrote a blog post about cutting hair and said in it "by the way, I am a barber", is that shameful?  If I went to a forum about money, trade, economics and a new currency and said "I am a barber and will accept your new currency in exchange for hair cuts", is that shameful?

What would be shameful is saying "I am an independent barber evaluator and have found XXX brand barber to be the finest in the world", while being the person profiting from XXX brand barbershops.

This article and user are not, in the slightest, shameful.

[AngryCatfish]

You advertised for bitcoin, so seems fair enough. Nice short article.