If you are Generation X, like I am, then you'll be aware that an alternative social infrastructure already exists for alternative currencies!
A little history for those who weren't emerging into the adult world in the Days of Grunge: There was a severe recession in the early 90's, and there was a kind of anti-consumerist anti-government anti-fiat thing going on. But this was pre-internet, so all the alternative structures were built in local communities.
There was the
LETS movement, which was a sort of Time Bank. Here's what it says on their site:
A LETS operates by Mutual Credit. A group of people come together and agree a name for the currency (or they may decide to use Hours). They create a directory of Offers and Wants to let each other know what they are willing to trade and can contact each other at any time. Organisers may also hold social events to encourage members to meet up.
The currency is created as credits move from one account to another so new members may spend before they earn. The sum of all accounts is always zero at any one time. No interest is charged or paid for accounts which are "in commitment" or "in credit".
The diagram illustrates the end-point of a series of transactions: Fred did a task for Sue who paid him 20 units. Joe sold vegetables to Fred for 5 units. Then Sue did 10 units worth of work for the organisation, which was paid out of the system account. (Apologies if this is difficult to follow - a moving diagram would help).
The System Account - and any special accounts which the organisers may create to facilitate the operation of the scheme - are funded by means of set fees charged to all members and/or commissions or donations. The sterling costs of running the scheme may be supported by joining/ renewal fees or fund-raising. Each scheme requires intelligent and administration and outreach if it is to flourish in its particular local context.
There are LETs groups still going throughout the world. The Generation X Grunge crowd has stopped using them (though there are still some hardcore elements), but the Occupy crowd now uses it instead.
There's absolutely no reason why the "Mutual Credit" unit in these LETS orgs can't be switched to BitCoins. Or BitCoin simply being added as part of the services in the LETs - so people can convert their local mutual credit into BitCoins and back. LETs are not taxed in the UK or Australia - see the
following FAQ which says:
The Australian Taxation Office ruling on LETS, released in February 13th 1991 states that there are no Taxation implications for personal arrangements, social arrangements, hobbies or pass- times. These constitute about 70 to 80% of all LETS transactions.
Only if I am a tradesperson, a professional, a business, or a retailer or wholesaler and I am trading in my business is there any implication for tax. In such cases, "Income" is income, and I have to pay tax on my LETS Credit earnings just as I do on my federal Dollar earnings.
I understand that the Libertarian crowd drawn to BitCoins may recoil a bit from getting into bed with the Grunge/Occupy crowd - but BitCoins will only really take off if people use them to do ordinary stuff - buy food, pay for plumbing. As long as it is in the hands of the speculators who see it simply as another gold, then it's in danger of the big investment houses piling in and controlling it, which is the opposite of what the original Bitcoin movement was about.
So the short answer to your question is: Find out if your local town already has a LETs set up, join it and persuade them to add switches into Bitcoins as part of their services.
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