Quote from: vacuum on April 24, 2013, 03:32:34 AM

What will happen is that anyone will be able to start a crypto currency just like anyone can now start a youtube channel - the difference being we're talking about governments and corporations rather than individual people.

All that is required is that payment for employees and raw materials be paid for in one's currency, and one accepts one's currency in exchange for whatever goods are produced.

For example, we could have usacoin in which the US government requires taxes to be paid in it, and it uses it to pay for government employees and other expenses. There could be cokecoin which Coca Cola uses to pay it's employees and expenses, and which it accepts for Coke products. There could be amazoncoin, fordcoin, etc.

The value of any one of these coins would depend on how many there are and the total gdp of whatever the sponsoring entity is.

Loans would no longer be needed to start new enterprises. The debt-based model would yield to the intrinsic money model based on goods, services, and credit. Investors would buy the coins early, and if a successful business is created, those coins would become much more valuable. If there is a default, assets would be liquidated and bid upon by whoever holds the coins.

Fractional reserve banking, loans with interest, debt-based money, and central monetary policy to balance money supply with economic activity would all become a thing of the past. None of that will be needed anymore for the simple reason that money will no longer be limited by monopolies, interest rates, or physical supply. Rather, it will be directly proportional to credit and economic activity.

Note that strictly speaking none of these would be currencies, but rather they would be money. Currencies do need to compete in the market since they are simply a medium of exchange, but money doesn't compete with other money since it has or represents value. Another difference is the inflationary or deflationary aspect. It might be ok for money to be deflationary, but there could be issues with a currency being deflationary.

I'm hoping we can get some experts (economic, monetary, technical) to analyze things from this perspective to determine if this is realistic, and if so, what the implications are.

I'm no expert but I am an enthusiast.

  I think your talking about stock, we could trade stock from one company to another directly. if companies followed this methodology they could invest in stock of their partner companies that provide value to them.

  so if company A, creates a lot of paper and knows their volume is high, they can buy stock in the paper recycling industry, so their over all worth increases as well, it could work as an indicator of a economic ecosystems health. Company B in another sector makes computers that do not need paper, company A realizes that the savings they will gain is greater than the value of the stock they have in the paper recycle-rs, they can safely sell their stock to buy stock in Company B before they begin their purchases. of course Company A being smart, analyzes the market to maintain stock in the paper recycling industry and realizes there are still other companies that require their services to maintain over all gains.

markets like these are predictable and stable because of their slow movement, so the actual market level can be calculated as long as all the factors of that company are known... which are suppliers... highly guarded secrets.

  this system would create a measurable marker of interest in specific companies or industries, if the appropriate companies can be analyzed by region, sector, customer base etc, effectively indicating developing trends in the real world.

  There may have to be a separation here between this form of investment and direct investment, since direct investment is limited and any extra resources granted to a company will simply be wasted if their is no need for that company to expand, it will simply gather pools of capital that sit idle. In a firmly established industry gaining any greater efficiency is very difficult, more money will not solve their problems if they can't expand their customer base.

Though for an intermediary step to maintain a companies safety, Kinda like a buffer zone, the company could introduce that money system that you are mentioning a little further down the page, like the tokens at arcades or casinos right? I like it keeps the companies safe during this development period of Bitcoin.