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Old 05 February 2015, 02:19 AM
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Errata Errata is offline
Join Date: 02 August 2005
Location: Santa Barbara, CA
Posts: 13,187

Originally Posted by WildaBeast View Post
I'm not an economist, but if snopes printed up a bunch of "snopes bucks" and snopesters all agreed that we would trade those snopes bucks among ourselves in exchange for goods and services, that probably could be considered a legitimate form of money, not unlike Bitcoin. They probably wouldn't get a very good exchange rate for Dollars, though, as the snopes economy would be rather small.
There are quite a lot of local currencies in the US. I managed to live in a town that had one without ever actually seeing one of the bills in person.

The exchange rate depends on how money enters and exits circulation. It doesn't follow that a small economy has a low value currency. If the policy is that some clown can print as many as he wants on a whim, then that will ensure a poor exchange rate. If there isn't anything useful that you can reliably spend the money on, then that's also likely to hurt it. But if there is something of value that you can always get with the money, it requires something of value to acquire it, and you have reasonable faith that it will remain that way, then it can have a stable value even in a small economy.

One could argue that videogames with in-game currency based micropayments have created a proliferation of new currencies. But the extent to which they could be considered "real" varies from game to game based on exactly how it works. In some games it's little more than store credit, while in others there is a fairly robust economy of players trading with one another for various things and exchanging back and forth with real money.

Last edited by Errata; 05 February 2015 at 02:41 AM.