Mar 29, 17 / Tau 04, 01 22:48 UTC

Re: E-Credits as a Currency  

Something to think about.

Apr 7, 17 / Tau 13, 01 20:33 UTC

I realize this is an old subject but I have been thinking a great deal on Currency in Asgardia.  There are those who would say to go to the barter system.  While that's not a bad idea, it is, admittedly, a potentially impractical idea.  What you may value something as high value and, thusly, a highly sought trade item, another may not.   There needs, for any country to really exist and flourish, to be a solid economy.  Now while I understand the idea of E-Credits, the problem with this concept is that electronics do fail sooner or later.  This is simply the nature of the beast, as they say, when it comes to machinery.  So there does need to be some sort of solid item for either credits or however we intend to word our money.  However, I do like the word *credits*, but that's merely a personal preference.  As for what it is made from, gold and silver is rather plentiful in the wider universe and is used on earth, these materials are also soft and do need to be "mixed" with other metals in order to be hard enough to be durable.  There is also the chance that these metals could eventually become useless except as for parts for electronics as we move into the future.  So having a gold-based system, while sound good on paper, is not 100% practical.   However, having a fiat system can also fall over as the value of the money can be devalued over time.  So our first goal should be facing the truth that we will need to base our financial system on something that will stand up over the long term and can be widely recognized as useful and valuable.  Could it be gold or silver?  Potentially.  Or platinum since it's also highly useful for electronics as is gold and silver.   Or it could be something we've not yet considered.   Also how these finances are earned must also be carefully considered.  Whenever you have an economy, you inevitably have the view of *haves* and *have nots*.  The wealthy and those who don't have so much.   I would also say to be very careful to avoid a *pure capitalist* system because that slips into oligarchies of the wealthy elite.    But that's an entirely different subject altogether.

Apr 9, 17 / Tau 15, 01 06:45 UTC

True enough, however, there has to be some sort of basis for currency not just a fiat system where we arbitrarily say *this is worth x - amount of money.*  Now that being said, things WILL change once the mines start.  But given the uses of such metals, it is unsurprising the prices for them are going up.  Now, that being said, a currency system based on one type of precious metal or other precious substance can be switched to another precious substance if necessary to ensure a good, stable, financial system but only carefully.  These were merely what is currently being used.  Though true, there may be other metals or substances far more precious in the future.

Apr 20, 17 / Tau 26, 01 01:23 UTC

Basing a currency on a rare metal is not a good idea. For example, although we can control long term inflation using metal based currency. It's really hard to control short term fluctuation. This can be seen from the history of gold standard. 

Also, using based our currency on rare metal means that we need to keep a huge amount of reserve of those metal. (these can be seen from countries use gold standard, or countries who impose currency board). When we don't have enough reserve of those metal, we might create a financial crisis (which did happen before, Britian before it dropped the gold standard, Argentina currency board).

Apr 20, 17 / Tau 26, 01 11:42 UTC

A physically based currency ignores intellectual value. That is exactly the opposite of the intent I believe we all have for Asgardia.

WGB

Apr 25, 17 / Gem 03, 01 00:55 UTC

Let's try a credit system still money but inflation doesn't effect it period

Apr 25, 17 / Gem 03, 01 06:05 UTC

If we do not want to steal from earth resources or other peoples money then
we have to build up first a stock of something being material or virtual.
So what have we now... we have a community who could donate 1 dollar for
the piggy-bank or donate virtual work/art/knowledge for selling to earth.

Grtz, Dirk.

  Last edited by:  Dirk Baeyens (Asgardian)  on Apr 25, 17 / Gem 03, 01 06:06 UTC, Total number of edits: 1 time