Click here to read about the creation of a new currency
in Bristol - the Bristol Pound (hat tip to Chris Colvin, an old Bristolian) Unlike past attempts to create a local
currency, the creators of the Bristol currency have taken care of the last
period problem associated with fiat money.
How have they done this? Well, in
true Thompsonian fashion, the local government accepts the new currency as
payment for local taxes (rates)! This
ensures that it has value in the last period, and therefore encourages traders
and shoppers in Bristol to use it.
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.