What is money?
The Essential Characteristic of Money: No Counterfeits.
The second hypothesis behind CloudCoin™ is that the value of money does not arise from the substance that it is made of but from the effort required to counterfeit it.
Gold coins, Paper Dollars, Electronic Bitcoins are all made of different stuff and yet they are all used as money, and all of them are valuable.
Monetary systems made of Gold, Dollars and Bitcoins are very difficult to counterfeit but not impossible. Gold can be mined and minted into duplicate coins.
Dollars can be printed by expert counterfeiters and by the Treasury itself; Bitcoins can be “mined” by solving puzzles and double-spent.
However, “Perfect” money cannot be counterfeited.