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Cryptocurrency Blockchain Value Exchange  RSS feed

 
Mike Brunt
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Ever since I heard-read of Ethereum and Blockchain I have become convinced that as permaculture is worldwide and not under the influence of any one government, we could really use and benefir from a Blockchain based value exchange mechanism of some kind.  Back in 2014 there was a fairly big splash around "Permacredits" then it all seemed to fizzle out quite rapidly; so I have two questions.

Does anyone know what happened to Permacredits?

Secondly do you know of any Blockchain based mechanism that would be good for permaculture
 
Michael Cox
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Why should permaculture need a different measure of value exchange than everyone else? It seems to me that bitcoin itself is a perfectly adequate exchange medium. Anything else is going to be less liquid, and therefore less useful.

The lesson that most small countries teaches us is that a strong external currency becomes a defacto second currency, as is seen with the US dollar in many parts of the world. The fact that it is backed by some external agency and not local institutions actually gives it greater value.
 
Michael Cox
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Or as a clearer specific example: Let say I'm a brick layer. I trade with other people in my close circle; the cement maker, the brick maker, maybe the site foreman. We like working together so we decide to agree our own special unit of currency. This works out fine for a while, right up until I decide to take a holiday and cash in my money. I suddenly discover that people outside my circle of trusted compatriots don't value our money. I can't buy tickets, book hotels, eat at restaurants. I may know - for example - that 1 unit will exchange for one hour of labour (or what ever metric you decide) but the outside world simply don't care. A hotel owner in some distant city doesn't care that my unit is worth an hour of Bob's time.

So for any permaculture currency to be viable it has to overcome the same basic rules that any currency does. It has to be widely accepted and easy to exchange for items of value. Until a permaculture currency does this I struggle to see how there will be a solution better than using a standard cryptocurrency (or normal currency!).
 
Mike Brunt
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Michael Cox wrote:Or as a clearer specific example: Let say I'm a brick layer. I trade with other people in my close circle; the cement maker, the brick maker, maybe the site foreman. We like working together so we decide to agree our own special unit of currency. This works out fine for a while, right up until I decide to take a holiday and cash in my money. I suddenly discover that people outside my circle of trusted compatriots don't value our money. I can't buy tickets, book hotels, eat at restaurants. I may know - for example - that 1 unit will exchange for one hour of labour (or what ever metric you decide) but the outside world simply don't care. A hotel owner in some distant city doesn't care that my unit is worth an hour of Bob's time.

So for any permaculture currency to be viable it has to overcome the same basic rules that any currency does. It has to be widely accepted and easy to exchange for items of value. Until a permaculture currency does this I struggle to see how there will be a solution better than using a standard cryptocurrency (or normal currency!).

Thank you Michael, there are some scalability issues with Bitcoin and as many have pointed out it is quite energy intensive with "mining" etc, however I agree with your points "It has to be widely accepted and easy to exchange for items of value"
 
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