If I understand this correctly, someone decided to create their own currency and its validity comes from other people buying into it and having confidence in it and being willing to both buy AND SELL stuff for BC rather than say, USD. The BC itself really has no value at all (neither do USD actually) unless people agree to exchange things for them. The "exchange rate" then is really a more or less arbitrary value based upon what people are willing to give up, sell or transfer for a BC. That is, the value of the currency is determined by the active market. So if someone decided they would sell 1000 dollar items for five BC each, and they did that for some time, the value of BC would be artificially inflated because people would expect to be able to get 200 dollars worth of merchandise for 1 BC. a 200:1 rate of exchange against the dollar. Meaning that if this someone had a buttload of BC in his wallet, he would be a BCillionaire in a heartbeat. Then he could dump his BC into the market by selling them to someone else for say 80% of the artificial value and go buy a private island while all the other people who were holding BC scrambled for redemption of their falling values. And since there is no central government behind BC, and no internet currency police, then there is no one to cry out to over the fraud. Is my understanding accurate?