2012-05-07 Wired: Minting the Digital Currency of the Future

[Stephen Gornick]

[MintChip] isn’t an alternative currency in that it’s a digital representation of the sovereign currency — the Canadian dollar.
Nevertheless, digital money geeks are atwitter, especially with comparisons to Bitcoin.

Wired: I’ve read that MintChip is just a central bank’s attempt to come up with its own version of Bitcoin. Is that accurate or bogus? Why?

Brule: As mentioned previously, the Mint has been following the digital-payment space for a long time. Through our early research, we discovered some market needs that we felt were not addressed with current payment offerings.

Wired: You recently said that Bitcoin works for the small group of people who believe in its value. Can you speak a little to that pixie-dust aspect of currency and money? I mean, it’s true that more people currently believe in the value of Canadian dollars than Bitcoin, but that’s an equally ethereal phenomenon, is it not?

Brule: All currencies rely on the underlying belief by people who use them – that they have and will have value. So in that way, you could argue that all currencies are ethereal phenomenon. MintChip, backed by hard currency held in trust, could gain wide acceptance on its applicability.

 - http://www.wired.com/threatlevel/2012/05/mintchip/

[tulkos]

Wired: I’ve read that MintChip is just a central bank’s attempt to come up with its own version of Bitcoin. Is that accurate or bogus? Why?

Brule: As mentioned previously, the Mint has been following the digital-payment space for a long time. Through our early research, we discovered some market needs that we felt were not addressed with current payment offerings

Says it all right there, doesn't it!  

[DeathAndTaxes]

Sad.

Brule: All currencies rely on the underlying belief by people who use them – that they have and will have value. So in that way, you could argue that all currencies are ethereal phenomenon. MintChip, backed by hard currency held in trust, could gain wide acceptance on its applicability.

Ok so all currencies rely on underlying belief in the users.  Sounds about right (albeit simplified).  So Mintchip is backed by underlying belief ... er wait... "hard currency"?

Wait I thought all currencies are backed by the underlying belief of its users?  The concept of "hard currency" is dubious.

A better point (one I disagree with but would at least be intellectually honest is):
MintChip is digital Canadian Dollars and they have higher acceptance due to a larger population base which believe in the value.


Still IMHO the best thing that can happen for Bitcoin is the progress of time and for other projects to fall by the wayside.   Say 6 years from now Mintchip is no longer supported and a bunch of Flooz 2.0, and digital tokens/credits have come and gone but Bitcoin is still around.  People will look back and say  "Wow Bitcoin has been around 10 years".  17 million coins issued and the project continues.  IMHO Bitcoin is a long road.  Barring something technically superior (and no Mintchip isn't it) time is on the side of Bitcoin.  Time will increase adoption, time will increase "faith" in the value as a medium of exchange.

[Foxpup]

Sad.

Brule: All currencies rely on the underlying belief by people who use them – that they have and will have value. So in that way, you could argue that all currencies are ethereal phenomenon. MintChip, backed by hard currency held in trust, could gain wide acceptance on its applicability.

Ok so all currencies rely on underlying belief in the users.  Sounds about right (albeit simplified).  So Mintchip is backed by underlying belief ... er wait... "hard currency"?

Wait I thought all currencies are backed by the underlying belief of its users?  The concept of "hard currency" is dubious.

That's where you're wrong! If you hand in your MintChip to the bank when it still has a positive balance, they'll give you shiny metal discs! Nothing dubious about it! Except for the fact that the discs have almost zero intrinsic value, but that's not the point! The point is it's backed by "hard currency"!

[Gavin Andresen]

People will look back and say  "Wow Bitcoin has been around 10 years".  17 million coins issued and the project continues.  IMHO Bitcoin is a long road.  Barring something technically superior (and no Mintchip isn't it) time is on the side of Bitcoin.  Time will increase adoption, time will increase "faith" in the value as a medium of exchange.

+1

I still expect it to be a long and very bumpy road, but as long as the system keeps chugging away reliably processing transactions I think it will, overall, in the long run, gain more and more trust.

[Yankee (BitInstant)]

People will look back and say  "Wow Bitcoin has been around 10 years".  17 million coins issued and the project continues.  IMHO Bitcoin is a long road.  Barring something technically superior (and no Mintchip isn't it) time is on the side of Bitcoin.  Time will increase adoption, time will increase "faith" in the value as a medium of exchange.

+1

I still expect it to be a long and very bumpy road, but as long as the system keeps chugging away reliably processing transactions I think it will, overall, in the long run, gain more and more trust.

Well said Gavin, well said.

[Dusty]

People will look back and say  "Wow Bitcoin has been around 10 years".  17 million coins issued and the project continues.  IMHO Bitcoin is a long road.  Barring something technically superior (and no Mintchip isn't it) time is on the side of Bitcoin.  Time will increase adoption, time will increase "faith" in the value as a medium of exchange.

+1

I still expect it to be a long and very bumpy road, but as long as the system keeps chugging away reliably processing transactions I think it will, overall, in the long run, gain more and more trust.

+1