Re:Who Pays the Price for Selling $10 Bills for $5?
by Razengan on Friday April 05, 2019 @08:26AM
(#19581807)
That gave me another idea which I haven't considered the implications of, but it sounds fun and video game'y:
Electronic/Smart bills, that keep track of how many times they've been used to purchase stuff with.
After a bill has been circulated N times, it increases in value by Y, and/or unlocks special artwork.
Some bills may become highly sought-after collectibles worth far more than their face value.
Would it help or harm the economy?
Re:Who Pays the Price for Selling $10 Bills for $5?
by huffmsa on Friday April 05, 2019 @08:50AM
(#19581983)
Well that shifts the value away from the bill being a promissory note and back to being the actually valuable item. Kind of like a commodities backed currency, which most nation's try to avoid.
Re:Who Pays the Price for Selling $10 Bills for $5?
by Fjolsvith on Friday April 05, 2019 @10:36AM
(#19582928)
The amazing thing about currency being actual valuable things (like precious metals or gems) is that it cannot be devalued by "printing" more of it from non-valuable things.
Nations try to avoid this because they can spend freely on a promissory note currency system. It is a recipe for disaster in the long term.
Re:Who Pays the Price for Selling $10 Bills for $5?
by 542458 on Friday April 05, 2019 @08:37AM
(#19581890)
The difference being that the fed can actually reliably keep that promise, since they can issue new currency and borrow at extremely low rates...
Edit: https://money.stackexchange.com/questions/5400/why-is-the-fr...
Edit1:
/s
Slightly more seriously, you could promise to anyone who bought a $10 bill that in some x number of years they could redeem that bill for $20. This is called "being the Treasury and Federal Reserve".
The hard part is finding a way to invest the $5 of profit they gave you in an asset which will appreciate faster than your promised return.
Edit2:
This is not advisable, see "Bernard Madoff, Ponzi Scheme".