From: Mark Hittinger <bugs@netsys.com>
Date: Mon, 14 Mar 94 21:58:51 PST
To: cypherpunks@toad.com
Subject: re: re: digital cash
Message-ID: <199403150601.AA18237@netsys.com>
MIME-Version: 1.0
Content-Type: text



>>Mark Hittinger says:
>> Are you guys going to simply represent dollars with your digital cash
>> or will you attempt to create your own currency that may simply be
>> converted to/from dollars?

Perry responds:

>I can't for the life of me understand the difference between a
>"representation" of dollars and something "convertable" into dollars.

Actually there is a very important distinction.  It has to do with time.

Suppose digital cash is denominated in dollars.  Digital cash then 
represents dollars.  Suppose we have a year with 10% inflation.  Your
digital cash holdings are reduced in real value because of the
behavior of the paper currency.

Suppose digital cash is not denominated in dollars but instead is
made to represent portions of gold stashed in a Swiss wharehouse.
Dollars would then be convertible into digital cash at some market
determined exchange rate.  Again suppose there is a year with 10% inflation.
Your digital cash would convert to a different number of paper dollars.

The difference between representation of dollars and conversion into
dollars is therefore one of time and one of governmental manipulations.

These are very important differences for attentive capitalists.
---------
I'd like a 250 Mhz 128 bit hybrid processor with 64 meg of 8 way interleaved
memory, a 10 megabyte per second i/o channel, two 3 gig hard disks, two dat
drives with compression, and a large diet coke.
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