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Comment by mlyang | Hacker News Reader

This isn't so much a bet on bitcoin as it is a bet on virtual currency. If another currency trumps bitcoin, Coinbase will become the wallet for that. So as a VC, if you buy the digital currency story, this seems like an intuitive investment.

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virtual currency ? money as we know it is already a virtual currency made by institution you can sue. Bitcoin is a virtual currency made by a virtual institution no one knows. The only reason you'd like to switch for a new currency is because it is a more trustworthy currency i.e one that reflect more the real economy not one based on some crypto algorithm

As I understand it, Bitcoin is money, digital money to be exact and it has a payment system, which is the means by which it _may_ become or used as a currency. To say it's a currency at the moment is a bit of a stretch. It's might be an extremely small and niche currency. I think it's important to make this distinction between money and currency.

How is fiat currency based on the real economy? It isn't. Some bloke at a central bank decides to create more or less money.

How do you think bitcoin works? Instead of the central bank deciding, an algorithm does.

>> made by institution you can sue

You're prefectly right. Last time I sued HSBC for money laundering and Goldman Sachs for maket manipulation I got a ton of cash and they learnt their lesson. Bringing the FED down to its knees was even easier.

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