Why Alt Currency Economies are good for the Traditional Economy

It's no surprise that the traditional economy doesn't like these new economy (alt currency) upstarts. They are a potential threat. But not really.

The traditional economy is broken. If the traditional economy was fixed, well then, the competition by these alternate currency economies would be reduced dramatically. We didn't see much innovation or development of alternate currencies back in the boom years. It's because people had enough money to get their needs met through the traditional economy. But now, no more. But people won't go without, so they are getting creative. We shouldn't be surprised by this. Human creativity should be expected.

So if you're a company or government that doesn't like these alternate currency economies or feels threatened by the development of them - there's a really simple answer: fix the damn traditional economy. But if you can't, it's no big deal, there are plenty of people/companies that are going to try. You just won't have a piece of that pie.

Comments

[Henri Hein]

Heather, you sound like Hayek! Look up his "Choice in Currency: A Way to Stop Inflation."

"What is so dangerous and ought to be done away with is not governments' right to issue money but the exclusive right to do so and their power to force people to use it and accept it at a particular price."