Mark Hittinger says: Are you guys going to simply represent dollars with your digital cash or will you attempt to create your own currency that may simply be converted to/from dollars?
Perry responds:
I can't for the life of me understand the difference between a "representation" of dollars and something "convertable" into dollars.
Actually there is a very important distinction. It has to do with time. Suppose digital cash is denominated in dollars. Digital cash then represents dollars. Suppose we have a year with 10% inflation. Your digital cash holdings are reduced in real value because of the behavior of the paper currency. Suppose digital cash is not denominated in dollars but instead is made to represent portions of gold stashed in a Swiss wharehouse. Dollars would then be convertible into digital cash at some market determined exchange rate. Again suppose there is a year with 10% inflation. Your digital cash would convert to a different number of paper dollars. The difference between representation of dollars and conversion into dollars is therefore one of time and one of governmental manipulations. These are very important differences for attentive capitalists. --------- I'd like a 250 Mhz 128 bit hybrid processor with 64 meg of 8 way interleaved memory, a 10 megabyte per second i/o channel, two 3 gig hard disks, two dat drives with compression, and a large diet coke. -----BEGIN PGP PUBLIC KEY BLOCK----- Version: 2.3a mQCNAiz4FWMAAAEEALBCb7HZS7V4gbsp9yJ7Yty49jQ9wcgRhkLjNNgdyJbrJZCq 5/sv4Ljy/4AhVhjlJyZS8L3owS8l0ClZVzWw4/kO3KN7MPz4YPPR7+qIlPQVM0yv gWpJ43EZZ8b8cvAkE9HATCKWktY2ReRSX5DLnScDH/n5jivw+MD/UO8fURCVAAUR tCBNYXJrIEhpdHRpbmdlciA8YnVnc0BuZXRzeXMuY29tPg== =VbKi -----END PGP PUBLIC KEY BLOCK-----