As expected, the defenders of the system have stepped forward and tried to attack Auroracoin. One can not help but show sympathy for those who need to defend such a faulty system against competition.

Frosti Sigurjónsson, Icelandic MP, resorted to doublespeak. In his blog against Auraracoin he claimed that more auroracoins could possibly be created out of thin air. He used the word "fraud" for this and then claimed that another flaw of Auroracoin was that it would undermine the Central Bank's revenue from printing money, its "seigniorage". Thus he uses the words "fraud" and "seigniorage" interchangeably depending on which one serves his purpose.

The truth is that such fraud/seigniorage is impossible in cryptocurrencies such as Auroracoin, but quite possible in fiat currencies such as the Icelandic krona. The krona has been diluted to lose 99.99% of its value in gold in a little more than 50 years. That equates to fraud/seigniorage of 90% each time taking place on four separate occasions during that time period. This will not be possible with Auroracoin.

Stefán Jóhann Stefánsson, editor with the Central Bank (the Central Bank of Iceland does so much printing that it needs an editor), criticized Auraracoin for its lack of issuer. That is exactly what should be counted as its strength. No one will be able to issue it. The only method of producing more auroracoins will be through costly mining, providing service to the currency. Even mining is limited so that the total money supply will reach a maximum of 21 million AUR in over a century.

Stefánsson, like Frosti Sigurjónsson, resorted to doublespeak. He called it "security" that someone is able to dilute a currency by creating money out of thin air. This use of words can be condoned if by "security" he means that it is secure that more money will be printed to diminish the value of the krona that Icelanders are forced to use.

This response by the system's defenders does not come as a surprise. Furthermore, it does not have much weight, since Auroracoin is constructed in such a manner that their support is not required.