From: Eli Brandt <ebrandt@jarthur.cs.hmc.edu>
Date: Tue, 3 May 94 23:52:39 PDT
To: cypherpunks list <cypherpunks@toad.com>
Subject: Re: Giving Value to Digital Cash
In-Reply-To: <199405040552.AA02485@xtropia>
Message-ID: <9405040652.AA20257@toad.com>
MIME-Version: 1.0
Content-Type: text/plain


> Most major economies are using fiat money today, so it is clear that fiat 
> money will work. But you could not create a new economy with fiat money. 

How would fiat money work without somebody enforcing a fiat?  I can't
see many of this crowd of anarchists and fellow-travelers being
willing to do that.

> The money has to start out having real-world value and convertibility. 
> After it has been in circulation for a while, it can be "decoupled" from 
> outside standards.

I think a "decoupled" currency would go the way of the Thorne, sooner
rather than later.

   Eli   ebrandt@hmc.edu