Bitcoins

Traditional money derives its worth from a promise.
The good word of the party issuing it.
In this case the country.
It's just like a contract -
Another kind of piece of paper
That depends on the good word
And good faith of the parties signed to it.
If I make a promise to you,
And write it on a piece of paper,
You could transfer that piece of paper
To someone else,
IF they knew me and had faith that
I was good for it.

"Good word", "good faith", "promises", and so on,
Have no meaning to a computer.

Bitcoins only have worth insofar as they have encryption power.

Bitcoin turns money from a contract based on faith to a game based on technology.

--- 13 August 2013