a risk was run of someone making coins that were not the purity/% content and the issuer of such devalued coin would be giving themselves purchasing value they did not have by defrauding others.
There is another risk that is even worse, at least historically. That is the hording of currency. Anyone can come in, and with enough resources horde a currency and destroy a nation. This was (at least according to history) the reason for the fall of (western) Rome.
There are many other examples of extreme fuckery in this vein as well though, including the impetus for the Coin act of 1873 which took silver off the dollar, and the hording of gold that led to the Great Depression (really it was the transferring of gold to Europe, but its the same effect). That led eventually to the EO that confiscated all the Gold in America under the tyranny of Eminent Domain (to our sovereign overlords), which final act of hording led to where we are today.
Governments generally declare a monopoly on the issuing of currency in their borders. This is reasonable.
Because of the above risk of hording, I suggest this is terrible, and will always lead to failure because of that intrinsic flaw. I suggest the only viable path to maintain a free market is one that has a market for, and encourages barter, with many possible exchange mediums, not set in value, but all as valuable as they naturally are.
I mean, you could set one as the standard (like silver), but it's only a placeholder number. As long as the act of setting a baseline doesn't give that medium any extra value itself just because it is set as a baseline, then hording becomes impossible (or at least highly improbable).
That is why I have suggested, and keep suggesting that the best path forward is one where all assets that can be reasonably put on blockchain, be put on blockchain (all stocks for instance. All PMs, etc.). This way the market is always open and free.
There is another risk that is even worse, at least historically. That is the hording of currency. Anyone can come in, and with enough resources horde a currency and destroy a nation. This was (at least according to history) the reason for the fall of (western) Rome.
There are many other examples of extreme fuckery in this vein as well though, including the impetus for the Coin act of 1873 which took silver off the dollar, and the hording of gold that led to the Great Depression (really it was the transferring of gold to Europe, but its the same effect). That led eventually to the EO that confiscated all the Gold in America under the tyranny of Eminent Domain (to our sovereign overlords), which final act of hording led to where we are today.
Because of the above risk of hording, I suggest this is terrible, and will always lead to failure because of that intrinsic flaw. I suggest the only viable path to maintain a free market is one that has a market for, and encourages barter, with many possible exchange mediums, not set in value, but all as valuable as they naturally are.
I mean, you could set one as the standard (like silver), but it's only a placeholder number. As long as the act of setting a baseline doesn't give that medium any extra value itself just because it is set as a baseline, then hording becomes impossible (or at least highly improbable).
That is why I have suggested, and keep suggesting that the best path forward is one where all assets that can be reasonably put on blockchain, be put on blockchain (all stocks for instance. All PMs, etc.). This way the market is always open and free.