First, running an alternate monetary systems as an on-the-books business is illegal. Consider what happened to E-Gold and the Liberty Dollar. Realizing the Internet was a threat to the monetary monopoly, the State made the laws stricter. Alternate monetary systems aren’t outright illegal. They’re taxed and regulated so heavily to make them impractical, especially when they don’t receive the Fed Funds Rate subsidy like a State-sanctioned bank.

If your alternate monetary system is fiat based, then nothing prevents the issuing authority from printing too much money.

If your alternate monetary system is based on gold or silver or barter, then why not just trade physical gold and silver? Why bother with an online currency?

People talking about alternate digital monetary systems make things needlessly complicated. Just use physical gold and silver and that’s good enough. If you use sound money, you don’t need fancy software and strong encryption.

2) There is a reason I brought up government violence into the argument. If the currency were solely digital and beyond the control of any human beings, then the only way the government would be able to shut it down would be to shut off the entire internet. On the other hand, the government can seize gold (much like it seized $27 million in gold from Liberty Dollar, officially claiming Liberty Dollar were engaged in a “conspiracy to undermine the Federal Reserve”).

3) “To the several objections against the current state of affairs, in which the States hold a great deal of gold, yes, this is somewhat of a problem. But if people can ween themselves generally from the State in the first place, their productivity could certainly effect greater change, and reduce the supply of gold in State coffers to a level no longer credibly manipulable, and the black market will eventually consume the white market.”

What do you mean by “weening people away from the State?” Do you have any particular plan? A first step?