Would you prefer a digital currency over your national currency?
If given the option, would you prefer a small portion of your income to be paid in Twitter Bucks? How about Elance Dollars? Maybe Facebook Credits? It’s not like a major social media player couldn’t throw some muscle behind the idea. After all, Facebook has 250 Million followers backing up its future business potential.
What if, just for the sake of brainstorming, the Internet became a medium where Peer-to-Peer transactions (via bartering arrangements) replaced the need to exchange a standardized currency where you could completely sidestep the necessity of exchanging dollars, pesos or XYZ national currency for your goods and services?
What if you could use your individual talents (and keep your mind out of the gutter) to successfully barter for your goods via the Internet?
I’ve never really given it serious thought before, but after watching the WSJ below, I’ve been giving it some serious thought.
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How would/could governments stop it? How could governments extract tax revenues? When traveling abroad, would you even need to worry about currency exchange rates ever again? What would happen to Forex speculators traders?
Many U.S. states have had (still having) difficulties figuring out how to successfully tax Ebay transactions or Amazon.com affiliate payments, and now a maverick idea like this comes along?
Granted, the idea completely decentralizes 800 years of financial practices and every semi-functional government on the planet would have a simultaneous cow, but is such a Utopian idea just crazy enough to work?
Whatever the outcome, it seems like it would be a fun experiment.