Re: Backing

Not a cryptography message -- sorry but I thought I had to discuss it... Peter Baumbach says:

Isn't a finite source of backing a problem since it rewards those who hoard it?

No. It punishes those who hoard it -- they don't get interest on their money.

If neither Alice or Bob have a backed currency, does that mean they cannot trade?

Depends if they consider what the other has to be of value. Its all up to them.

Has anyone invented a workable "barter currency"?

I don't see what the point would be. Why not just deal in a medium of exchange?

Can I.O.U.'s be created such that they work like money?

Sure. Thats what banknotes are. Perry