So it only works moving very small amounts of money, toy currency. We're back where we started. I understand very well how it works, I don't even know what your point is anymore. It works for moving tiny amounts of money, I am not disagreeing with this statement, it's just silly in my mind and it's not solving anything new nor is it scalable in its current form, in fact it has some very obvious weaknesses which make it a terrible idea for any real amount of money. Then again, I think bitcoins are a joke to begin with, it's programmers reinventing currency and realizing that hundreds of years of finance actually did solve some of the big problems.
> So it only works moving very small amounts of money, toy currency.
The small size of the bitcoin economy means that it is currently only practical for transferring amounts of a few thousand dollars at most. We both seem to agree on this.
What I can't understand is why you think this makes it a "toy currency". Physical cash is very rarely used for payments of over $1000, yet you haven't explained why greenbacks are somehow real money, and bitcoins are just toys.
For that matter, most consumer purchases are under $1000. The largest companies in the world make their money off of selling sub-$1000 goods. But apparently, a payment mechanism that could be used for 99% of consumer goods is just "a toy". I simply don't understand this argument. Its utterly bizarre.
Just because there are a lot of transactions at a low level doesn't preclude the possibility of larger transactions with cash and the USD. The credit card systems, banks and all other parties can handle transactions up to enormous sizes (I am not sure if/what the limit even is) and all that happens without affecting the USD. There are other currencies I would consider toys as well used by real countries. Many of the smaller ones that don't allow you to convert them freely are basically toy currencies as well. They are models, they work in small scale, but for whatever reasons are very limited (in those cases the limitation is often governments cant handle foreign exchange and speculators). Bitcoin is a toy because it can't handle size to the extreme.
I think at this point we're just disagreeing over what constitutes a toy. I have credit cards with credit limits under $10,000, but I wouldn't consider these to be toys, even though I couldn't use them to, say, buy a house. But even though your definition seems odd, I guess I can't really say it's wrong.
