Sat, Mar 31, 2012
Speaking of local exchange trading systems and alternative currencies, do you think
would be a good thing to use to start an alternative currency project?
Mon, Apr 2, 2012
I don't see "peer to peer" or "p2p" anywhere. That is necessary for people to trust it. Otherwise it has a central authority which is always the weakest-link and can be used to steal anyone's money, as we constantly see in most or all existing kinds of money with a central authority.
Bitcoin became a 200 million dollar economy at its best (and oscillates on an exponential scale, so it will probably continue growing later) because its a peer to peer (no central authority) secure cryptocurrency.
Security means nobody can hack into it. A central authority of any kind is a back door to hack into it, and people have correctly learned not to trust that. Example: Try starting a new bank which you run out of your house. You are the central authority in that case.