BitcoinA currency is only as strong as people's confidence in that currency. I don't have enough funds to create the same level of confidence as a government which can draw funds from millions of people. But if many people unite together, we can create confidence in the bitcoin currency.

My theory is that if a dozen or more different people each run a personal currency exchange and invest an inconsequential amount of another currency to their available balance each day while while saving the same value worth of bitcoins, then two important things will happen.

First, consumers and merchants will have enough confidence to use the currency because there will always be sufficient funds available.

Second, exchangers will have more confidence because each exchanger will have the same value worth of bitcoins saved as he has invested and the other exchangers will collectively have enough funds available in other currencies to recoup his investment.

You are welcome to use my exchange service as a template and customize it as little or as much as you'd like. I use a Google docs spreadsheet to keep track of my exchange rate. The columns that I use are essentially A-Date, B-Daily Number of Bitcoins Generated, C-Daily Cost, D-Exchange Rate =AVERAGE(B#:B#)/AVERAGE(C#:C#) where # is the first and last rows, E-Reverse Exchange Rate =50/D# where # is the first row.

More pages