Re:I spent 16 months on this Bitcoin explainer. by Art of th...
by chii on Tuesday May 29, 2018 @09:56AM
(#17179168)
> What’s to stop someone from creating a new coin and entirely new supply of currency?
Nothing. Just like nothing stops anyone from printing out their own paper money. However, nobody will accept it, since the trust in your new paper money is next to nil, as no shop or services will accept it as a form of payment (perhaps except yourself).
Replacing paper money with a new cryptocoin of your own makes no changes to the above argument.
However, if you are able to produce goods or services which is needed by somebody, then you can price your goods/services in your own paper money, and setup an exchange rate yourself. If other people sees the exchange rate, and deem it worthy, they will exchange their existing currency with yours, in order to purchase your goods/services. This process is the one that gives any currency any real value.
Nothing. Just like nothing stops anyone from printing out their own paper money. However, nobody will accept it, since the trust in your new paper money is next to nil, as no shop or services will accept it as a form of payment (perhaps except yourself).
Replacing paper money with a new cryptocoin of your own makes no changes to the above argument.
However, if you are able to produce goods or services which is needed by somebody, then you can price your goods/services in your own paper money, and setup an exchange rate yourself. If other people sees the exchange rate, and deem it worthy, they will exchange their existing currency with yours, in order to purchase your goods/services. This process is the one that gives any currency any real value.