From: Black Unicorn <unicorn@schloss.li>
Date: Fri, 29 Mar 1996 20:25:23 +0800
To: Hal <hfinney@shell.portal.com>
Subject: Re: What backs up digital money?
In-Reply-To: <199603280546.VAA02513@jobe.shell.portal.com>
Message-ID: <Pine.SUN.3.91.960328161610.1406G-100000@polaris.mindport.net>
MIME-Version: 1.0
Content-Type: text/plain


On Wed, 27 Mar 1996, Hal wrote:

> I have to disagree somewhat with a few points Mike made.  I would say
> that gold and diamonds do have intrinsic value, based on their beauty
> and the desire of people to own them.  I think it is too simplistic to
> denigrate these desires as the product of advertising.  The feelings that
> people have which make them desire these things are as legitimate as
> other forms of desire.


Take a look at the frontline piece on DeBeers, (there's also a good 
"Nova" on the subject) has some very interesting points which tend to 
support the view that the value of diamonds is almost entirely dependent 
on marketing and public perception.

At one time I had some works which supported this view as well.  I'll try 
to find pointers to them again.

[...]

> A particular issue of "digital cash" could be denominated or backed by
> anything the issuer thinks there is a market for.

Diet coke?  :)

[...]

> 
> Hal
> 

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