Danny,

> For example, why not an e-currency backed by real estate?
> It could be better than gold.

> A piece of land is in the same category. An acre of land today will still
be
> the same acre of land in ??? years, ...
> But land does grow stuff, and that's where it beats gold.

Trouble is, that land could also "grow" radioactive dumps or a spaceport for
turism to Jupiter. The value of that land can change because some people
decide to do something with it or near it. Property value depends too much
of local factors, while gold does not.

Having property backing a currency means you need to have people constantly
evaluate the property. Why would you trust them? And imagine the enormous
effort to manage it! The larger this thing goes (= the more things you use
to back your currency), the closer you get to the idea of paper money since
it represents the value of all property of a country.

Same with stock. Stock value is inflated (= has only partial physical
backing) and too volatile.


Money definitely moves toward an electronic era, but I doubt it will be
backed with land, houses, shares or... vodka. It will either be
electronic... paper or electronic gold, or both...


George Hara




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