George,

> 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.
--- That is correct, unless you choose land used for agriculture,
reasonably far away from cities and industry and get an insurance that
covers the land value at the time of original purchase in cases of
chemical poisoning and adverse acts of government. Was difficult to find
the insurance company, but nevertheless possible.
Gold on the other hand is highly political. The US had forbidden ownership
of it, as had China, India had forbidden minting for a while and quite a
few countries still regulate export.

> 
> Having property backing a currency means you need to have people constantly
> evaluate the property.
Not really, as the land does produce a revenue itself we chose to fix the
price of it. But in this case the goal is revenue with little to no risk
rather than only a means of exchange. Still some clients do trade it quite
actively.
> 
> 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...

On a different yet related note, under the Kyoto protocol plans where to
issue carbon credits to countries with rain forests and to allow those
countries to trade the credits with industries who are pumping excessive
CO2 into the atmosphere, harming everyone. the idea being of course that
developping countries are being paid fro protecting their forests while
the main polluters are being penalized. That in itself is a kind of
property backed currency.
There were even discussions to include tree farms and allow private
allocations an open exchange were credits could be traded.
Of course, everything fell apart when the Mad Moron took office and the US
pulled out of the Kyoto treaty.
Imagine it would have worked out and a country like Brazil would have
decided to base the Brazilian Real in their carbon credits... or private
institutions would have started to green the deserts issuing a DLC against
carbon credits.

Cheers,
Robert.

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