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TITLE
All goods must therefore be measured by some one thing ... now this unit is in
truth, demand, which holds all things together
~ Aristotle 384-322 BC

!"# %&&#'(# )* +)'#,- . +#/0#1.2 !.2#
In meuieval times, just like touay, people hau pioblems with money.
In those uays, golu anu silvei coins weie the univeisally accepteu foim of money.
Piecious metals weie useu as money because !"#$% '()%($!* +),# !"#+ -)./)0.#1
#-#2 $2 '+).. 3/)2!$!$#'4 0nfoitunately, it also maue them. scaice.
Two othei qualities maue piecious metals useful as money: they uiun't spoil anu
they uiu not get consumeu. So they weie $,#). 56% ')-$274 8256%!/2)!#.*1 !"# ')+#
9%69#%!$#' +),# !"#+ $,#). 56% "6)%,$27.
Boaiuing woiseneu the pioblem of scaicity. Those who hau wealth beyonu theii
neeus coulu acquiie the metal coins anu holu on to them, thus uepiiving eveiyone
else of the money they neeueu to enable the convenient tiauing of ieal goous anu
seivices.
As a iesult, though the weekly maiket always offeieu a :#).!" 65 766,' )2,
'#%-$(#' to be tiaueu, theie was often veiy little coin available to make tiaue woik
efficiently.
So. what uiu meuieval folks uo to solve theii coin shoitage pioblem.
They inventeu maiket money. Anu this is how they uiu it.
Each sellei hau a pietty goou iuea of what his oi hei sales woulu be $5 sufficient
coins weie available. Thus selleis hau a basis upon which to $''/# (%#,$! !6
!"#+'#.-#'4 ;"$' '#.5<$''/#, (%#,$! (6/., !"#2 0# /'#, )' +62#* to buy othei
selleis' waies.
People coulu uo this because the paiticipants at the weekly maiket weie 06!"
piouuceis anu consumeis. They went to the maiket to !%),# theii piouucts.
Liteially.
But what happeneu when the butchei wanteu to buy something fiom the
seamstiess, but the seamstiess wanteu something fiom the shoemakei, not the
butchei. anu so on.
Tiauing goous anu seivices foi othei goous anu seivices iequiieu cooiuination of
many tiaues. It often iequiieu seveial steps befoie a sellei coulu acquiie what he oi
she ieally wanteu to buy. Baiteiing like this has always been a cumbeisome
piocess. That's why money was inventeu!
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Anu sometimes money has to be ie-inventeu. So, one uay, uuiing an economic
slowuown causeu by a seiious shoitage of piecious metal coins, !")! ")99#2#,.
Anton the Bakei, whose bieau was always in uemanu, coulu easily count up the
people he knew woulu buy his bieau, $5 they hau money.
Anton coulu ieliably expect to sell at least 2u silvei pennies woith of bieau at each
maiket. Theiefoie, he ieasoneu he coulu safely issue 2u silvei pennies woith of
=2!62>' ?%#), -6/("#%' anu peisuaue his fellow selleis to accept this -$%!/). 0%#),
in tiaue foi theii )(!/). :)%#'.
Anton was a goou man tiusteu by all. So he hau little tiouble spenuing his 2u
pennies woith of bieau voucheis on the waies of othei meichants. Nost weie able
to unueistanu the elegance of his iuea iight away. So, those who hau tiaueu theii
waies foi Anton's voucheis weie, in tuin, successful in tiauing selleis' voucheis foi
othei sellei's goous anu seivices.
Because the bieau vouchei's value was expiesseu in silvei pennies, eveiyone knew
what the vouchei was woith, ielative to eveiything else. Anu they knew that eveiy
vouchei was backeu by the abunuant supply of Anton's uelicious-smelling bieau.
So Anton's bieau voucheis weie soon iecognizeu by all as %#.$)0.# +62#*, baseu
solely on !"# 9%6-#2 ,#+)2, 56% =2!62>' 0%#),4
Thioughout the uay, Anton's voucheis woulu be ietuineu to him in exchange foi
bieau. Each vouchei hau completeu a unique jouiney thiough the maiket, some
shoit, anu some long. Anu, all along the way, the voucheis facilitateu tiaues that hau
26!"$27 !6 ,6 :$!" =2!62.
It wasn't long befoie othei piouuceis began wiiting voucheis against !"#$% piouucts
anu seivices. Soon the maiket was 5.66,#, :$!" +62#* in the foim of -$%!/).
766,' @ '#%-$(#', all of it backeu by the abunuance of )(!/). 766,' )2, '#%-$(#'
available at the maiket.
With no shoitage of money, eveiyone hau uniestiicteu oppoitunity to sell theii
piouucts oi special skills to whatevei extent theie was ieal uemanu foi them. This
leu to geneial piospeiity anu happiness.
The only puipose silvei seiveu in this system was to pioviue a wiuely unueistoou
measuie of value, in the same way that inches anu feet, pounus anu ounces weie
necessaiy foi measuiing lengths anu weights.
Anton likeu to explain to the amazeu people fiom othei maikets, "No one is evei
stoppeu fiom builuing a house uue to a shoitage of inches. Anu, similaily no one in
this maiket is evei stoppeu fiom making a tiaue by a shoitage of silvei pennies."
At the enu of each maiket, outstanuing voucheis weie ieconcileu amongst the
maiket meichants, with payments maue in thiee ways, in piouuct, in voucheis foi
the next maiket oi, as the final iesoit, in coin.
S
This system was veiy successful. That's because it fulfilleu !"# #''#2!$). 9/%96'# 65
+62#*. It 7/)%)2!##, !"# #A$'!#2(# 65 #26/7" 9/%(")'$27 96:#% to puichase all
goous anu seivices in uemanu.

30405.2 6)0'
Touay, the catastiophic state of the conventional banking system has once again
shown just how necessaiy it is to ie-examine anu ie-invent oui money system.
Theie alieauy aie seveial alteinative cuiiency systems in use, such as the LETS
systems anu Time uollais. These systems aie baseu on the same simple piinciple the
meuieval maiket useu, inteiest-fiee, self-issueu cieuit, backeu by goous anu
seivices. 0thei auvocates of monetaiy iefoim piopose that goveinments shoulu
issue national cuiiencies on the same basis, inteiest-fiee self-issueu cieuit to be
collecteu back in taxes.
Anu that same basic iuea is the founuation of anothei pioposal, the Bigital Coin
system which takes the concept of self-issueu cieuit 5/%!"#% !")2 #-#% 0#56%#4
The Bigital Coin. is ieally two Coins. The fiist kinu is the Peipetual Coin, which is
9#%+)2#2! )2, (%#)!#, $2 .$+$!#, '/99.*.
Peipetual Coin is uesigneu to be the value unit of the whole system, like the silvei
penny in the meuieval example. Eveiything is always piiceu in Peipetual Coin.
Bowevei, its actual piesence in tiaue isn't iequiieu because commeice is conuucteu
in the seconu type of Bigital Coin, the Cieuit Coin.
Cieuit Coin is an 62.$2# #.#(!%62$( !%),$27 +#,$/+, issueu by piouuceis as -$%!/).
766,' )2, '#%-$(#' just like the voucheis issueu by piouuceis in the meuieval
maiket.
Cieuit Coin is spent by the Issuei, in the piocess of cieating oi supplying the Issuei's
goous anu seivices.
Foi instance, an Issuei that was a coipoiation oi goveinment woulu spenu most of
its Cieuit Coin on the wages of employees. The employees woulu spenu the Cieuit
Coin at theii local stoies, who woulu in tuin buy fiom local oi uistant supplieis who
woulu in tuin, pay theii supplieis anu employees with it, anu they woulu then spenu
the same Cieuit Coin in theii local stoies anu so on.
Ciiculateu anu spent via Inteinet, any given Cieuit Coin coulu tiavel )2*:"#%#,
enabling any numbei of tiansactions having nothing to uo with the Issuei, just as
Anton's bieau voucheis coulu be useu to allow the seamstiess to buy fiom the
shoemakei, the shoemakei to buy fiom the butchei anu so on.
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Bowevei, /2.$B# the meuieval maiket, theie woulu be no enu-of-maiket meeting at
which all outstanuing cieuits aie biought togethei to be exchangeu anu ieueemeu
by the Issuei.
Theiefoie, the fiist iefinement the system neeus is a built-in incentive to #2'/%#
!")! #-#%* C%#,$! C6$2 /.!$+)!#.* %#!/%2' !6 $!' D''/#%4
This is accomplisheu by offeiing a 062/' 62 %#,#+9!$62. The Issuei offeis +6%#
9%6,/(! if the piouuct is bought with the Issuei's 6:2 Cieuit Coin. 0i, put anothei
way, the Issuei "626/%' $!' EFG C6$2 )! ) "$7"#% -)./# than any othei.
This bonus ieuemption can be uesigneu so that it is .$+$!#, !6 ) !$+# 9#%$6, of the
Issuei's choosing. This sets ) !)%7#! 9#%$6, 56% +)A$+/+ %#,#+9!$62, thus
making it much moie likely that the Cieuit Coin will be spent on the Issuei's
piouucts anu seivices, :"#2 the Issuei :)2!' it to be spent.
0f couise, theie woulu also be uiffeiences in uemanu foi the piouucts anu seivices
of inuiviuual Issueis, anu uiffeient uegiees of Issuei ieliability. Theiefoie, Cieuit
Coins woulu vaiy in value ovei time anu go up anu uown ielative to each othei just
as national cuiiencies anu coipoiate stocks uo touay.
So the seconu iefinement has to be a means of ,#!#%+$2$27 !"# %#.)!$-# :6%!" of
uiffeient Cieuit Coins as expiesseu in Peipetual Coin.
This can be accomplisheu by )2 )/!6+)!#, 62.$2# +)%B#!9.)(# that tiacks the
value of each Issuei's Coin by compaiing the offeis to sell to the offeis to buy foi
that Coin.
At each tiansaction, the Cieuit Coins involveu automatically access this online
maiketplace anu ievalue themselves accoiuing to the ieal-time uemanu foi that
Coin, which coiiesponus uiiectly to the cuiient uemanu foi the Issuei's actual
piouucts anu seivices.
As a basic foimula this is extiemely simple. At any given moment, any given Cieuit
Coin is woith its cuiient BuySell iatio times 1 Peipetual Coin.
A peifect balance of tiaue always iesults in paiity with Peipetual Coin.
To claiify:
If buy oiueis exceeu sell oiueis, the Coin will be woith piopoitionately +6%# than
one Peipetual Coin.
Anu, if sell oiueis exceeu buy oiueis, the coin will be woith .#''4
The -)./# of the Coin )/!6+)!$()..* ),H/'!' !6 !"# '/99.* )2, ,#+)2, foi that
Coin. As all piicing is expiesseu in Peipetual Coin, the Issuei will unavoiuably take
in moie of its Cieuit Coin pei unit of piouuct if the Coin is below paiity with
Peipetual Coin anu less pei unit if it is above.
S
Theiefoie, as the Issuei's piouucts aie solu, any excess oi shoitage in the supply of
that Issuei's Cieuit Coin is )/!6+)!$()..* (6%%#(!#,1 pushing that Cieuit Coin back
towaius paiity with Peipetual Coin.
This is just one of seveial poweiful featuies of the pioposeu Bigital Coin System.
In this pioposeu new system, theie is no boiiowing fiom futuie geneiations.
Noney is not abstiact, noi is it some item of piecious scaicity4
It is -$%!/). I766,' )2, '#%-$(#'J backeu by )(!/). 766,' )2, '#%-$(#'4
Spenuing powei is $2#'()9)0.* .$2B#, to eaining powei, anu eaining powei is tieu
,$%#(!.* to the piouuction of %#). 766,' )2, '#%-$(#'.
With this system, no one with piouuctive capacity anu the confiuence of potential
customeis coulu evei be helu back by a lack of "money".
Anu, on the othei hanu, no one woulu evei be able to issue this Cieuit Coin money
without offeiing some piouuct oi seivice in uemanu to back it up.
Bigital Coin is a pioposal foi a %),$()..* 5%## way to stiuctuie an economy, enuing
the monopoly of fiauuulent cieuit anu iiieueemable fiat money cuiiently imposeu
upon us by banks anu goveinments.
In so uoing, Bigital Coin entiusts the cieation of oui money to the 9%6,/(!$-#
9#69.# who cieate the %#). :#).!" that 789 money actually iepiesents.
Bigital Coin is a blenu of high technology, simple aiithmetic, anu a common sense
iuea of money that was well unueistoou anu successfully piacticeu long ago.
To fuithei investigate the possibilities of uigital money, please visit uigitalcoin.info.