Comment Re:The same is true of the US dollar (Score 1) 438
The analogy isn't perfect because the Federal Reserve "creates" more money than is actually printed, so the dollar is really a "virtual" currency as well. But the point stands that the total amount of _commitments_ made in dollars exceeds the amount of dollars that "exist" by any central measure.
The physical (virtual?) Bitcoin example would be: if you have an account with a Bitcoin bank and you make a transfer to someone else who's using the same Bitcoin bank, they don't have to generate a Bitcoin transaction to honor that transaction.
The virtue of Bitcoin is that it allows anyone to perform transactions in a way that only banks can do with dollars, but this is not the only way to perform transactions with Bitcoins any more than it is with dollars.