Comments on: Coincidence of Wants Problem Destroyed By Internet http://socialmode.com/2009/02/21/coincidence-of-wants-problem-destroyed-by-interne/ Integrated Synthesis of Media, Society and Behavior Sat, 10 Mar 2012 15:47:05 +0000 hourly 1 http://wordpress.com/ By: un1crom http://socialmode.com/2009/02/21/coincidence-of-wants-problem-destroyed-by-interne/#comment-1207 Mon, 20 Apr 2009 17:57:14 +0000 http://socialmode.com/?p=988#comment-1207 thanks. you are right that electronic and paper fiat money really aren’t different.

however, i’m not sure about the statement that all fiat systems and governments backing them are doomed to fail. If so, I’m not sure how commerce on the internet has any hope – i can’t think of any internet commerce that isn’t basically fiat based. of course, just because I don’t see hope in the face of your claim doesn’t mean your claim isn’t true. Talk me through your thinking on fiat systems leading to collapse.

the internet does significantly eliminate wastage and costs in many transactions, especially with the transaction is just about information or media, and not physical goods.

]]> By: Greg Simmons http://socialmode.com/2009/02/21/coincidence-of-wants-problem-destroyed-by-interne/#comment-1206 Mon, 20 Apr 2009 17:06:51 +0000 http://socialmode.com/?p=988#comment-1206 The behavior of electronic transactions is not distinguishably different from the workings of paper fiat currency, both are media of exchange that have no inherent value and do not, therefore, meet the criteria of a true money. A fiat currency induces market actors to stay in the game continuously, even when they might prefer to sit out for a while, because they know that the paper in their wallet has no intrinsic value. This is nothing but an economic game of musical chairs, and the music always stops eventually. Just as building an airplane does not repeal the law of gravity, fiat money, whether paper or electronic, can’t repeal the fundamental truths of economic reality. Fiat monetary systems and the governments that force them on their citizens are always doomed to fail, as ours are failing now. I agree that the internet does mitigate the double coincidence of wants problem to some degree, but it does not eliminate the wastage factors and transaction costs inherent in barter exchange.

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