Bitco[i]n

I have to admit that I've not understood the bitcoin currency. I don't understand how bitcoins are created or who controls them.

I'm no expert on currency, but this is what I think I know: There is hard currency, which is currency that is based on some tangible thing. Gold and silver were popular currency foundations, but it could have been anything else, such as iron ingots. Currency arose from warehouse receipts-- a farmer would take his wheat or grain to a local storehouse and receive bearer receipts for it. The farmer then might trade those receipts for something else, like a new harness for his ox. Those grain receipts were the first money.

Then there is fiat currency, of which about 99.9999% of the world uses. This is where a government issues currency and in turn. will only accept payments and taxes in that currency. A central bank of some flavor issues the currency and controls the supply. Some fiat currencies are more exchangeable (or trusted) than others, such as the Japanese yen as opposed to the North Korean Won.

So either a currency is valuable because it is backed by some tangible goodies or it is valuable because a viable government and national economy makes it so.

Bitcoins would seem to fall into neither category. I don't see where they differ from some kid making a $200 bill with crayons and construction paper. Bitcoins are a shadowy pseudo-currency with no government regulation, so I'm very much surprised that Goldman Sach's sleazy fingerprints haven't been found all over them.