Where can we look for better money: to the market or to the state? It is a myth that better money has always, and can only, come from government or other collective action. Theory and historical evidence indicate that the “state theory of money” is false: Private initiative gave rise to the earliest commodity monies to serve the needs of commerce. Although sovereign states commandeered the coinage in antiquity, not to improve it but to extract revenue, we provide the evidence that private mints worked well when and where they were allowed. Silver and gold coins were valued by weight, not by which ruler’s face was stamped upon them. Private currencies in the form of redeemable banknotes were the most popular form of payment in the nineteenth century, and their introduction preceded government paper currencies. Central banks in monopolizing the issue of currency and obstructing international specie flows did not improve the monetary system but the contrary. While contemporary fiat money (non-commodity money issued by government) rests on the power of the state, gold and Bitcoin do not require the imprimatur of the sovereign to serve as good money.
Discussion
I believe that Cryptocurrency/Blockchain/Publicly-Distributed-Ledger technologies offer a novel chance at the perfect time. -- An opportunity to change our politics and the quality of our governance. -- Empowering the individual, and decoupling from centralized authority, the power to manipulate our monetary policy and supply. -- To engender a greater sense of international unity and accord, with the establishment of universally accepted means of storing, retaining, and exchanging value and keeping units of account. -- WE can unify 'The Millennial Super-Majority'; the 35-and-under demographic which, for the first time, can out-vote 'The Boomers.' --To begin the necessary transition(s) of political, economic, and social power to the coming generation(s). -- Part of the problem is that the 70 and 80 year olds establishing policy, have not, and will not, have to live with the consequences of their decisions; be they 'poisoned waters, burning trees, or unaffordable housing.' -- WE can rally around positive, creative, economically responsible, technologies -- that help remove the influence of money in our politics, and poison from our public discourse. -- To free ourselves from 'Private Interests' in 'Public Halls'; for the betterment of the 'Common Good.' -- I would love to see -- 'The Millennial Super-Majority' – peacefully insist in unity that "WE" are free; and make it so with OUR vote.
-- No more negativity; fix the money; fix the world. -- Let's get it!