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While the demand for most moderen currency is based around Taxes and Debt you can also link them to a wide range of real or vertual goods. AKA gold in an MMO or Mooncakes in china. (http://marketplace.publicradio.org/display/web/2010/09/21/a-...)

Edit: Bit coin is an interesting experement with the idea that simply because something is finite it has value based around the idea that at some point people might want it. Even the most simplistic analysis suggests the market will quickly become prone to bubbles but what's intresting is how it will recover after a major crash.

PS: I don't know why people ignore the link between Taxes and Money but try paying your taxes in gold bullion and see how far you get.




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