Welcome to Currency 2.0 Beta
Please note this was written with very little coffee and sleep, the below will change once I have reversed this situation.
I started this group to see if there is anyone else out there that is working on a new currency system. As a lot of people are aware the current FIAT currency appears to be out dated based the current situations around the world.
As long as the current system remains in place there is potential for a large blowout that will result in the general public coping all the slack and hard times.
There has to be a better way, a more reliable and stable system that can be used to measure value.
When I mention this to people the first response is normally "Can't be done" or "Backed by Gold". To me gold isn't the best option as it doesn't have any real value, it has value in today’s world however I don't see that value as real. For example, to live a basic life we need Air, Water, Food and shelter from the elements. Gold doesn’t have any effect in a basic life. And with a basic life there is no need for community, you farm/hunt/feed yourself and if your family is growing you need to work harder until your children are old enough to assist.
To live a better and longer life we need medicine, trade/barter that in history leads to currency.
Now I can’t see everyone turning off technology to go out and farm for themselves and live a basic life. Development is something that has become expected, people don’t want to go backwards they want to move forward. To make this happen there has to be a new currency that can replace the current system and still allow for development, not rely on debt while still allowing people to live a life they have grown accustom to.
I am play with some models at the moment, however I doubt I am the only one. If you are also looking into this area I believe this group is a great place to introduce yourself, share ideas to assist each other with our own projects.
Though each person could be working on completely different models there is no reason why we can’t discuss our own models, pros, cons and learn from each other to help our own models grow. My model for example is population based. There could be people here that have already looked into this type of system and moved on to something else. Having a discussion about this could spark new interest in the same model for you, make me realise it is not worth looking into and move onto another model and also provide feedback on your models and the pros and cons for it.
Opensource is something that has worked well for the tech industry and I can’t see any reason why it couldn’t work for this type of project.
Yep, i've definitely considered it. My own personal view is that our economy is simply a transition of energy. Therefore, almost by default, our unit of currency should be the Joule. An economy grows with surplus energy and shrinks with deficient energy. But that is as far as i've got. I really want to understand why currencies fail before i attempt to design one. Currently there is a discussion going on in this thread initiated by DaveFairtex which has turned into an interesting debate as to the nature of our current credit/debt system.
Other than that i'd recommend a wide ranging approach upon which to formulate an informed opinion (which is what i'm currently attempting to undertake)
I've found the following people/sites helpful;
For information on the IMF Special Drawing Rights and the new reserve monetary standard (concept-stage) try the Philosophy of Metrics
For information on global cycles it's worth having a look at Martin Armstrong's Blog
The History of Money over at debtcrash also makes a nice addition.
Of course it may be the case that no matter what system we devise the forces of nature ultimately have the final say. But maybe we can develop a system that works in harmony with the forces of nature rather than one that exploits/suppresses them.
All the best,
Hey Luke, thanks for the feedback and the helpful links. I believe corruption is always going to play a major factor however one thing that a lot of companies I consult with don't see is how KPI's need to set based on the companies goals and direction. I see currency having similar issues, although there are a heap more issues and something like this isn't a quick fix.
For example, an ex bank CEO starts work at a private company. The board of directors say his KPI is to increase revenue. So with his banker hat on the CEO just sells a heap of companies. KPI achieved and he gets his bonus.
I have seen this happen in the real world with a company I worked at. It was in debt collection, the board of directors were not impressed as they wanted increased collections revenue not sale of assets. However the CEO got his bonus.
Back to currency. If there are no KPI's no goals things are just going to go the way the greedy want. If their where limits, KPI's set the currency would be under more control.
I agree there should be currency and not just a barter system as progress would slow. If everyone went back to a barter system we would all be focused on farming and not technology and research. With a currency we don't all have to farm.
A FIAT currency does have potential to work however without any real goals other than More more more what other outcomes could we expect?
Applying limits, targets, KPI's then we could have some form of reasonable direction and expectations. At the moment it seems to be "need more money? print it" however it should be "need more money? justify"
At one stage I was thinking of a currency based on limits, restricted savings levels based on bandings, restricted markups allowed by manufactures and resellers.
If there was only X amount of money in the world per person there would still be the separation between rich and poor however there would be realistic prices that do not increase dramatically and more efficient use of money and consumables.
We manage energy better than we manage currency, to me that is just crazy. However we have more of an idea on the limits in energy than we do in currency. The only thing stopping use from applying limits to currency is greed.
How much money is in the world today?
How much money will be in the world in 12 months?
How much energy will we consume in the this year?
How much energy will we consume in 12 months?
My bet is most people on this group will be able to answer the later two questions by not the first two as accurately.
Again, by the time I get to post I am normally needing sleep and or coffee so apologize if there are any errors and/or I have not been clear on something.
Before looking and loans and lines of credit I believe it is important to look at the core of a new currency system. Banks tend to play a large roll in the collapse of a currency, corruption and lake of limits also play a role in this.
As I have already mentioned KPI's need to be identified as a base. This would ensure that a currency is not focused on greed.
One of the biggest issues we have at the moment is greed. Iphone costs $50 to make yet sells for over a $1,000. Most of the products we buy come with a massive markup.
There is simply no need for this however the current system not only allows for this to happen it promotes it.
The old saying "money doesn't grow on trees" is a good one however it also raises the question! Should money grow? I am not suggesting we use leaves as a currency however Bitcoin did have a good idea. Money had to "Grow" therefore a limit is applied. Bitcoins doesn't have any KPI's and does have a lot of room for corruption however the initial concept was good. Even though Bitcoin was the reason the silk road took off giving it a dark past.
The concept of "Growing" money is appealing I believe there are more variables that need to be applied.
When it comes to the banking industry we need to make sure it works with the currency not the currency works with the banks. The idea of getting a loan for things we want and don't need is something that would have to be reviewed. Getting a loan to buy an Iphone, not really smart and contributes to the growing issue.
Interest is something that really needs to be reviewed and on a system that removes banks from the core gives less restrictions when applying limits.
There is a post on this site about an alternative and it has some ideas that could work and others that need a little refining. I am referring to Possible Future Solutions 2.0
So it has been identified that less pollution, more trees and more advancements in technology are just some of the things people want. Converting some of these into KPI's while still making the currency work in the real world is the hard part.