[1SaltwaterC]

Call me a skeptic as I see this like speculation, but where I've seen that kind of return, turned out to be really clever ponzi schemes and enough supply of dumb enough "investors". Oh yea, I remember that fun time when the housing market in my area went up 5X in 4 years. It was all fine till people ran out of actual money. The rest is history.

[calinet6]

A currency can't make value out of nothing for long. Eventually reality will set in. I think that's the moral of this story.

[miles]

A currency can't make value out of nothing for long.

Why, my dear fellow, that is exactly how every government-backed currency works today!

And, thanks to its inflationary nature, it becomes virtually worthless over time:

Although inflation has remained low in recent years, it ravages the value of paper money over time. A dollar in 1900 is only worth about $0.04 in today's currency.

Quoted from: http://finance.yahoo.com/blogs/daily-ticker/bitcoin-prices-b...

[calinet6]

Ah yes, of course, but that currency is undergoing inflation. Bitcoin is rapidly deflating. Huge difference.

[miles]

My point was simply that no currency is backed by "stuff" any more. I was responding to your criticism of Bitcoin ("A currency can't make value out of nothing for long").

Of course Bitcoin is deflating - it was designed that way. And of course fiat currencies are inflating - there is no limit to how much can be printed except reason, which is apparently in short supply.