A currency’s exchange value is pegged by a gold reserve, a silver reserve, the tax system or something similar. Convincing people to buy goods with UBI-coin is trivial because the default value of an invented currency is zero. My question thus becomes how does MikkW incentivize people to sell goods and services in exchange for UBI-coin?
Pegging to a commodity is not different from convincing people to sell things in exchange for the currency, though. If I start a new currency pegged to gold, what I’m doing is saying “I promise to sell you gold for this currency.” This promise is never of infinite strength, and so it can be evaluated with the same logic as the promise my supermarket makes to sell me milk in exchange for dollars.
If the promises of the supermarket are strong, there is no need for you to promise that you’ll sell me gold for dollars.
So, how could I get my supermarket to accept UBI-coin, in addition to dollars? Well, what if I promised to pay them some dollars to do this as a promotional thing, and also promised that I would be going to other local businesses and giving them the same deal, so that the decision-makers of the supermarket would be able to spend their UBI-coin on local goods and services? If people took this deal, this would allow for UBI-coin to function as a currency without a need for me to make a “central” promise that I would sell gold for UBI-coin.
A currency’s exchange value is pegged by a gold reserve, a silver reserve, the tax system or something similar. Convincing people to buy goods with UBI-coin is trivial because the default value of an invented currency is zero. My question thus becomes how does MikkW incentivize people to sell goods and services in exchange for UBI-coin?
Pegging to a commodity is not different from convincing people to sell things in exchange for the currency, though. If I start a new currency pegged to gold, what I’m doing is saying “I promise to sell you gold for this currency.” This promise is never of infinite strength, and so it can be evaluated with the same logic as the promise my supermarket makes to sell me milk in exchange for dollars.
If the promises of the supermarket are strong, there is no need for you to promise that you’ll sell me gold for dollars.
So, how could I get my supermarket to accept UBI-coin, in addition to dollars? Well, what if I promised to pay them some dollars to do this as a promotional thing, and also promised that I would be going to other local businesses and giving them the same deal, so that the decision-makers of the supermarket would be able to spend their UBI-coin on local goods and services? If people took this deal, this would allow for UBI-coin to function as a currency without a need for me to make a “central” promise that I would sell gold for UBI-coin.