afterzir Posted September 9, 2018 Posted September 9, 2018 In an anarcho-capitalist economy, money creation would be done by private companies. My question/concern deals with "contagion". If a bicycle shop goes out of business, their bikes still work fine, whereas if a money printing company goes out of business, the currency is now garbage. I envision this leading to a chaotic market. How could this be mitigated? (or something to that affect) Also, this is separate, but if there are many private money printers with different view points then there is a risk that in a time of war that 99% of money printing companies support the home team, but there is one money printer dishing out money to the enemy. What to do about this? Thanks, Afterzir
smarterthanone Posted September 9, 2018 Posted September 9, 2018 5 hours ago, afterzir said: If a bicycle shop goes out of business, their bikes still work fine, whereas if a money printing company goes out of business, the currency is now garbage. Not true. If bitcoin goes out of business would a bitcoin be worthless? Gold has never even had a business, is it worthless without a company to promote it? In some instances sure that is possible. But I think by looking at how the business or currency is run would determine the risk factor. New companies that made it simple to exchange between 1000 currencies quickly would sprout up and it could be as simple as swiping a card with credits which transfers into any other currency as accepted by the merchant such that it hardly even matters. 5 hours ago, afterzir said: I envision this leading to a chaotic market. How could this be mitigated? (or something to that affect) More chaotic than just watching your savings disappear due to inflation? 5 hours ago, afterzir said: Also, this is separate, but if there are many private money printers with different view points then there is a risk that in a time of war that 99% of money printing companies support the home team, but there is one money printer dishing out money to the enemy. What to do about this? How would a currency support a country or such? It is a business. You buy into it. Only as a function of government in which they give free money ie inflation or by making laws to outlaw the use of currency by certain countries residents in many transactions can a currency support a country or entity. If its run as a business these are not going to happen. Would a bicycle company give free bicycles away to some group or country or something? No. They would go out of business. If a currency gave free money to some group like that they would lose the inflation rate + confidence in their product such that they would lose customers.
Jsbrads Posted September 9, 2018 Posted September 9, 2018 What makes you think private company/banks wouldn’t issue gold, silver and other precious metal coins. its complete BS that precious metals don’t have value. Electronic company are still consuming gold at current prices to plate leads and jewelry, silver is used in solder and fillings, platinum catalytic converters, copper wiring... Besides one can insure their bank/currency against failure.
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