Money

[FEELEPIC]

So if money is simply an agreed upon term of which each of us understand by the numbers of which the money issued is by a "Trusted" authority and the faith in them... Whats to stop someone from creating their own USDC or some form of fiat currency with no central backing and issuing it to every person in the world and told them collectively that this value will always valued to the USD or whatever. Would then people find a way to be able to use it? And if it was all collectively agreed (of course without seeing the actual treasury of issued funds because you know... "Fractional Reserve Banking") then couldn't that money now exist in USD?  And if this were to happen , what would happen to the USD itself if everyone on the planet were to receive lets say 10000USD. Would that affect our current monetary system or is it made it up money issued by some random person on the internet?

[jackg]

Legally accepted money is only currency that the court has promised it'll accept ("legal tender") that's it...

If $F1000 were given to every person, it'd be worthless. If we say EVERY human in the world is capable of about $800/year of economic output in a "fair" system -eg no geographical limitations - then your $F are already realistically worth $0.8 each.

At the start, if half of the population of India, Africa and South America are despirate to cash out the money then that's $F2tr that's already being dumped on the market for normal dollars (at this point I imagine fake dollars to drop below 0.1$ at least)...



Something like this actually happened when bitfinex got hacked. They gave every user the equivelant to what was hacked in a dollar token and they opened trading on that, apparently they've paid every token holder back through buybacks but a month after that market was opened, dollars were being sold for 3 cents.

[mu_enrico]

Money is not equal to Currency.
Gold is money and historically used as money, but nowadays cannot be used to purchase stuff directly because the authority enforced fiat usage as legal tender.

Whats to stop someone from creating their own USDC or some form of fiat currency with no central backing and issuing it to every person in the world and told them collectively that this value will always valued to the USD or whatever.

Law.

Anyone can create a virtual currency, only used inside the system. For example, In-game currency, like money in GTA V. You can even rent a hooker with it.
But it stops right there. You can't use it outside the system. If you are trying to make it a competing legal tender, you will have problems with the authority.

[magneto]

So if money is simply an agreed upon term of which each of us understand by the numbers of which the money issued is by a "Trusted" authority and the faith in them... Whats to stop someone from creating their own USDC or some form of fiat currency with no central backing and issuing it to every person in the world and told them collectively that this value will always valued to the USD or whatever. Would then people find a way to be able to use it? And if it was all collectively agreed (of course without seeing the actual treasury of issued funds because you know... "Fractional Reserve Banking") then couldn't that money now exist in USD?  And if this were to happen , what would happen to the USD itself if everyone on the planet were to receive lets say 10000USD. Would that affect our current monetary system or is it made it up money issued by some random person on the internet?

That's actually the issue facing China rn with Antgroup controlling credit instead of the central bank.

The reason why regulations have tightened is that China obviously wants to maintain a degree of monetary policy sovereignty as opposed to having to submit themselves to the arbitrary decisions of Ma who could have essentially been operating on fractional reserve since so many people use their Alipay "CNY" as default currency.

To answer your question, yes, anyone can create their own "currency" that is fractionally backed, or perhaps not even backed at all.

But your credibility has to stem from somewhere to create value in your currency. It's all about trust. If no one trusts that you have the reserves to back up deposits then your currency will not be valuable. Whereas if everyone trusts that you have the backing, then you could theoretically have more influence on money supply than even the central bank (something that could have happened if Antgroup were to be kept relatively unregulated).

[Lorence.xD]

Anyone can create a virtual currency, only used inside the system. For example, In-game currency, like money in GTA V. You can even rent a hooker with it.
But it stops right there. You can't use it outside the system. If you are trying to make it a competing legal tender, you will have problems with the authority.

I do not think so, virtual currency can be used outside the system. Take Old School Runescape Gold, most players participate in RWT(Real World Trading) where they sell the gold in game for cash. Currency is a complicated topic.

To OP, the reason that someone does not just make their own currency is because they lack authority, if you have a vision for the future but no one is taking you seriously then you are as good as a fanatic that is shouting at the void. Also, you need to consider that if anyone can make their own legal tender then that could result in inflation.

[mu_enrico]

Anyone can create a virtual currency, only used inside the system. For example, In-game currency, like money in GTA V. You can even rent a hooker with it.
But it stops right there. You can't use it outside the system. If you are trying to make it a competing legal tender, you will have problems with the authority.

I do not think so, virtual currency can be used outside the system. Take Old School Runescape Gold, most players participate in RWT(Real World Trading) where they sell the gold in game for cash. Currency is a complicated topic.

For some, yes. Many in-game currencies are also sold/traded in the real world.
But for a wider community, legal tender, it won't be accepted. Perhaps only a few shops will accept it.

[Lorence.xD]

~

For some, yes. Many in-game currencies are also sold/traded in the real world.
But for a wider community, legal tender, it won't be accepted. Perhaps only a few shops will accept it.

But that means that your first claim that virtual current exist outside the system invalid. Even if it is not accepted in a bigger community, it is traded in real time right? How about Axie Infinity? They have Small Love Potion as the virtual currency that can be traded for real money and they are a booming community.

[FEELEPIC]

So if money is simply an agreed upon term of which each of us understand by the numbers of which the money issued is by a "Trusted" authority and the faith in them... Whats to stop someone from creating their own USDC or some form of fiat currency with no central backing and issuing it to every person in the world and told them collectively that this value will always valued to the USD or whatever. Would then people find a way to be able to use it? And if it was all collectively agreed (of course without seeing the actual treasury of issued funds because you know... "Fractional Reserve Banking") then couldn't that money now exist in USD?  And if this were to happen , what would happen to the USD itself if everyone on the planet were to receive lets say 10000USD. Would that affect our current monetary system or is it made it up money issued by some random person on the internet?

That's actually the issue facing China rn with Antgroup controlling credit instead of the central bank.

The reason why regulations have tightened is that China obviously wants to maintain a degree of monetary policy sovereignty as opposed to having to submit themselves to the arbitrary decisions of Ma who could have essentially been operating on fractional reserve since so many people use their Alipay "CNY" as default currency.

To answer your question, yes, anyone can create their own "currency" that is fractionally backed, or perhaps not even backed at all.

But your credibility has to stem from somewhere to create value in your currency. It's all about trust. If no one trusts that you have the reserves to back up deposits then your currency will not be valuable. Whereas if everyone trusts that you have the backing, then you could theoretically have more influence on money supply than even the central bank (something that could have happened if Antgroup were to be kept relatively unregulated).

Interesting , but doesn't China (CCP) control their own economy? And aren't all corporations beholden to the CCP and not to any other group? I'm sure Jack Ma wouldn't be a problem especially if they needed him to be removed...But it seems to me that BTC itself is the "digitized trust" (or blockchain) But it seems to me that it only needs to be trusted by the people as a means of exchange with federal backing...Hmm.

[bits4books]

The main point is that this is a" consistent " term. Money is not just " I'll go print some papers and say that you can buy food with it." Money is a social contract between so many agents. Between the state, people, other states, other people.
If no one accepts your "currency" as a means of payment, then it will be just useless garbage.
If no one wants to fool around with the new conversion rates and the need for cross-conversion in calculations , then it will be just useless garbage.
If no one wants to use your "money" because "why?" Then it'll just be useless trash.
You look at money as the result of the printing press and think that it is all very easy and simple but in fact you are deeply mistaken.
The main initiator of the creating of this social contract is at least the government and at most a fairly large number of people.  think again why you can not just take and make money.

[FEELEPIC]

The main point is that this is a" consistent " term. Money is not just " I'll go print some papers and say that you can buy food with it." Money is a social contract between so many agents. Between the state, people, other states, other people.
If no one accepts your "currency" as a means of payment, then it will be just useless garbage.
If no one wants to fool around with the new conversion rates and the need for cross-conversion in calculations , then it will be just useless garbage.
If no one wants to use your "money" because "why?" Then it'll just be useless trash.
You look at money as the result of the printing press and think that it is all very easy and simple but in fact you are deeply mistaken.
The main initiator of the creating of this social contract is at least the government and at most a fairly large number of people.  think again why you can not just take and make money.

Seems like this is simply a perception play? Seems like you would only need the masses to accept this as "tender" that it ultimately becomes something of value (Of course providing the social contract is with a lot of people which implies network effect)

Fascinating.

[bekti3]

I do not think so, virtual currency can be used outside the system. Take Old School Runescape Gold, most players participate in RWT(Real World Trading) where they sell the gold in game for cash. Currency is a complicated topic.

It is true that there are still certain platforms where virtual currency can be cashed into money according to the compatible exchanges on those platforms. like a game currently being played by many people. Although it is not free to play, there is a kind of fee charged.

[Broly46]

Money is the thing that hard to get and many people want it.
People would do anything for money because people are very smart about money
Everyday people are always worry about money
Everyday couple fighting for money
Everyday people working for money
Every 10 minutes people are making money from mining new block
Money is moving very fast, money today move faster than speed of light, it’s running at about a dozen exa hash a second, yup speed of light look pathetic
Money is a solution is also a problem
Money give happiness, money give sadness
Money money money!
I dunno what’s money, it’s just a wall of texts

[Reid]

Legal issues will be your problem.
You will need to abide by the rules first especially when you are stationed in a strict country.

You can make altcoins, that's alright but it will have no value until you put it in the market.
By putting it in the market means you have filed legal documents which I bet will be expensive and you will need to worry about it being passed.

[FEELEPIC]

Legal issues will be your problem.
You will need to abide by the rules first especially when you are stationed in a strict country.

You can make altcoins, that's alright but it will have no value until you put it in the market.
By putting it in the market means you have filed legal documents which I bet will be expensive and you will need to worry about it being passed.

I don't think creating money out of thin air is really "legal" only the fed can do what they want right? hahaha

Money is the thing that hard to get and many people want it.
People would do anything for money because people are very smart about money
Everyday people are always worry about money
Everyday couple fighting for money
Everyday people working for money
Every 10 minutes people are making money from mining new block
Money is moving very fast, money today move faster than speed of light, it’s running at about a dozen exa hash a second, yup speed of light look pathetic
Money is a solution is also a problem
Money give happiness, money give sadness
Money money money!
I dunno what’s money, it’s just a wall of texts

Money is simply a tool. Nothing more nothing less but i'd be curious if people were to receive a mass amount of capital (to pay off debts / build businesses etc) and also assuming that we aren't increasing inflation of course which of the people who received the amount of capital , how many would end up with more debts and end up in the same place before if not worse?

[Casdinyard]

If it would be arbitrary, those people who would agree upon the use of that currency perhaps, will be the only one who will be exchanging with one another and transactions will be only limited to them. Same logic occurs in trading, collections as an example wherein there are other factors affecting the value of something, for the collectors. But for the normal people outside that circle, prices will depend to its price when it was released to the market as is. As what other users mentioned, what makes a currency totally accepted is due to legality issues regarding different governments or to the world market in general. With that being said, I think it would be hard for total acceptance to occur into something if it won't undergo legal procedures.

[FEELEPIC]

If it would be arbitrary, those people who would agree upon the use of that currency perhaps, will be the only one who will be exchanging with one another and transactions will be only limited to them. Same logic occurs in trading, collections as an example wherein there are other factors affecting the value of something, for the collectors. But for the normal people outside that circle, prices will depend to its price when it was released to the market as is. As what other users mentioned, what makes a currency totally accepted is due to legality issues regarding different governments or to the world market in general. With that being said, I think it would be hard for total acceptance to occur into something if it won't undergo legal procedures.

What if it was forced by its users upon the ones who wield this power? Can collective conscious come together to bring it to fruition assuming numbers?

[Wexnident]

The situation you just presented is bundled with a bunch of "what if" scenarios. That in itself makes the argument of whatever you want to make a mistake itself, since if that "what if" was possible, then really, it would be quite active in the world already.

I don't think creating money out of thin air is really "legal" only the fed can do what they want right? hahaha

Err altcoins in the market can be called money but without any real value, legal or not, it wouldn't function as one. You can see shtcoins out there being made, but most of them are just left in the dumpster after seeing that it's a dead project.

Money is simply a tool. Nothing more nothing less but i'd be curious if people were to receive a mass amount of capital (to pay off debts / build businesses etc) and also assuming that we aren't increasing inflation of course which of the people who received the amount of capital , how many would end up with more debts and end up in the same place before if not worse?

You can look at lottery winners I suppose. There was a thread about that in the Gambling Section, and most of them just went up and spent it in donations from what I recall.

What if it was forced by its users upon the ones who wield this power? Can collective conscious come together to bring it to fruition assuming numbers?

That would require not only 50% I suppose, but more. If we were to start talking about numbers, then a simple 50% of the population agreeing with you is not going to work simply because the population is too numerous, to the point that even if you obtain exactly 51% of the population to fight for something, it'd still have close to 0 fighting power against the rest of the 49%. BUT if it were to work well, numbers aren't everything BUT it could be a factor. Forced is a bad term I'd use for it though, Revolution would be quite a better term since you are trying to create a new legal tender via force, and in this case, force is only required IF two parties aren't really agreeing OR are fighting over the same territory.

[jaysabi]

Whats to stop someone from creating their own USDC or some form of fiat currency with no central backing and issuing it to every person in the world and told them collectively that this value will always valued to the USD or whatever.

What’s stopping this is that without the ability to peg it to the USD, nobody would have any reason to believe them. You’d have to have the ability to pay out anyone wishing to convert the new coin in USD if you’re promising it’s going to be pegged to the value of it, so you’d have to have reserves equal to that. If you were able to do that, it would indeed have that value. But obviously nobody can do that, which is why the coin eill
Be worthless.

[FEELEPIC]

Whats to stop someone from creating their own USDC or some form of fiat currency with no central backing and issuing it to every person in the world and told them collectively that this value will always valued to the USD or whatever.

What’s stopping this is that without the ability to peg it to the USD, nobody would have any reason to believe them. You’d have to have the ability to pay out anyone wishing to convert the new coin in USD if you’re promising it’s going to be pegged to the value of it, so you’d have to have reserves equal to that. If you were able to do that, it would indeed have that value. But obviously nobody can do that, which is why the coin eill
Be worthless.

So what about DAI? It's a decentralized stable coin. If they're allowed to do it , why can't others right?

[fiulpro]

This picture I took from google, now let us examine what's written on it.

**This note is legal tender



**I promise to pay the bearer a sum of one hundred rupee

Now look I can put forth a lot of currencies issued by the government, the points will stay the same.

** These are the ones which are backed by the government
** People won't trust other currencies which are randomly created by other currencies
** Even crypto took years to get recognized !!
** USD , the value will itself depend on the government itself the future depends on how the government will handle the economic situation.