Bitcoin, the world’s most successful digital currency, defies this time-tested classification system: It is neither fiat nor representative. It is not fiat, because its supply is actually finite and, more importantly, it lacks any central backing authority. Nor is it representative, because it is not linked to anything physical. Thus the internet has (once again) spawned a phenomenon that is inexplicable via conventional economic frameworks.
see: http://contrariancompliance.com/2013/06/01/the-end-of-bitcoin-as-we-know-it/
for Juan LLanos’ Blog on “The End Of Bitcoin as we Know It “
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