I enjoy a good debate. It’s the closest thing to dueling there is today and I love to mix it up. I think that vigorous debate is the cornerstone of learning and I envy the great thinkers of the past who engaged their peers in no holds barred intellectual contests. While I obviously can’t be certain, I feel comfortable stating that greater understanding was the goal though I’m sure bragging rights probably played a role too.
Today, that great pastime is almost completely extinct. Any disdain for weak or flawed ideas is interpreted as “trolling” and hitting the block button on your favorite social network is much easier than being confronted by the uncomfortable truth that your favorite idea, opinion, or belief simply doesn’t have legs.
As I stated in my previous post, Trump, Twitter, and the Failed American Experiment, I did not expect the core concepts of The Currency Paradox to hold up (though I hoped they would). I figured there were too many people with too much expertise on the subject to allow my essay to stand.
Two years later, the core concepts of The Currency Paradox have yet to meet a significant challenge. I honestly am not sure if it is because what I wrote is so bulletproof or so feeble that people are unwilling to discuss its flaws or merits more closely. I think time and evidence have continued to strengthen my points but, if I had to be completely honest, I really don’t know. Maybe the ideas are just so impractical or esoteric, people are just content to ignore them.
In lieu of debate, I’ve decided to address what I think are potential criticisms. I think the most likely one is that the ideas behind the chron, the currency innovation presented in my essay, just aren’t original. After all, currency solutions based on time have been around for a very long time.
To preemptively address that criticism, this post is about what makes the chron different from any other time-based currency solution. The factors that I’ve identified are as follows:
Two Monies vs One: probably the most significant difference the chron has versus other time-based currency solutions is that it fundamentally acts as two currencies rather than one. The eChron, or “earned chron,” represents chron that are earned as a result of effort; the xChron, or “exchanged chron,” are earned chron that are used for trade, exchange, or commerce.
This is a useful innovation because it solves the taxation problem related to most currencies in general and time-based currencies in particular. The eChron are untaxable because they are the result of the individual’s effort, the taxation of which would constitute theft. The xChron is taxable because it is given in exchange, requiring practically no personal effort.
Compatible with free markets, risk vehicles: While the eChron ensures that everyone has the same base level of pay, the xChron allows additional compensation to be awarded based on market need. This is elaborated on more fully in The Currency Paradox.
Also, because the chron is seamlessly fungible, it is a direct replacement for central-bank issued (CBI) currency and can be utilized for any risk vehicle in which CBI is used.
Compatible with modern banking: The xChron allows the chron to be used for modern banking. In other words, it is compatible with the concept of the debt liability; like CBI currency, banks can write loans in xChron. One of the main advantages of the chron is that, because they are created by people creating value by effort rather than the loan creation process, the conundrum of using money from a net-negative sum loan (due to the demand for interest) to pay off another net-negative sum loan is avoided.
The best way to think about this is that, rather than money being created from the issuing of loans, everyone owns their own money which is “printed” as a result of their time/effort.
Expansionary or contractionary: Using taxation and modern banking, chron supply can be kept very near to supply/demand equilibrium, unlike other time-based currencies. As an objective, value-based currency, a far more precise picture of the currency in circulation relative to its demand as well as any related interest obligations can be captured versus CBI currency.
Compatible with all pricing models: How would you price a book with chron? Simply charge for the estimated time it would take to read it. A book that would take roughly an hour to read would cost 60 chron. This pricing model can easily be applied to journalism as well. How about ears of corn? Try “growth time” divided by number of ears.
Almost anything can be priced based in time/effort.
In short, what makes the chron unique among other time-based currency solutions is that it is:
- Seamlessly fungible;
- Compatible with free markets and modern banking;
- Expansionary and contractionary
The chron solves every major problem related to currency, including all those related to other time-based currencies. To learn more, please read The Currency Paradox.
Disagree? Then, by all means, please leave a comment.