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BerkShares

en.wikipedia.org

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Re: BerkShares

#71

Post by andybass »

rocqua wrote: post #65
andybass wrote: post #26

Earlier quoted context omitted.

My company (Conpoto), runs a local currency/gift certificate platform that is purchased with regular dollars, but is only redeemable at local merchants participating in the program. We're in a bunch of states and Canada. We'll do hundreds of thousands of dollars in currency purchases annually in some communities. It's used quite a bit by employers who want to keep money local (rather than sending it to Amazon or Targ…

On the face of it, that feels like companies issuing their own currency to control their employees. If leaving the company means moving somewhere your money isn't accepted, you won't leave. If you won't leave, the companies can screw you and you have to take it or lose all your savings.

Sorry - I should have clarified more. These companies are using the currency for small rewards, holiday gifts, etc - as opposed to as a salary.

Re: BerkShares

#72

Post by function_seven »

ww520 wrote: post #53

So the issuing banks print a BerkShare, sells it for $.95US to the public, and got to keep the $.95US. Hmm, anything that I missed that would dampen my enthusiasm to be an issuing bank?

The public can also sell a BerkShare to the bank for $0.95. I don’t see how the bank makes a profit from this, other than using it as a way to acquire customers. (EDIT: Or some interest on the float, I guess)

Re: BerkShares

#73

Post by gbacon »

sandworm101 wrote: post #19
rurounijones wrote: post #2

While not exactly an economist / finance type I would have thought the federal and state governments would have shut this down as it removes a certain level of currency control no? Can anyone explain the legalities around this?

It is barter, goods for goods. The profit is still taxed. This is not technically money in that it is not backed by a government. It's just bits of paper. Printing your own probably isnt a horrible crime, more a copyright violation or fraud rather than a felony. That people assign value to these bits of paper is no differnt than bitcoin. If a bank wants to sell bitcoin, or buy them, it can. The regulations re whether…

You are describing legal tender, a positivist concept. Real money need not be propped up with such measures.

Re: BerkShares

#74

Post by cloakandswagger »

johnfn wrote: post #69
outsidetheparty wrote: post #56

Greetings from Berkshire County! BerkShares don't actually exist, as far as I can tell. I occasionally run across news stories about them, but I've never seen one and have never met anyone who's ever seen one (and I've asked around, because it's weird seeing news stories about things in your hometown that as far as you can tell don't actually exist.)

How can this be possible when the Wikipedia page has pictures of them..?

There are also pictures of Bigfoot and the "moon landing", doesn't mean they exist.

Re: BerkShares

#75

Post by clhodapp »

s17n wrote: post #55
ww520 wrote: post #53

So the issuing banks print a BerkShare, sells it for $.95US to the public, and got to keep the $.95US. Hmm, anything that I missed that would dampen my enthusiasm to be an issuing bank?

They are pegged against the dollar, meaning that the bank agrees to buy it back for what they paid for it. So basically, the issuer is taking out a zero interest loan from the users of the currency. Not a bad deal considering that the bank doesn't have to do any of the work involved in their typical source of zero-interest money (checking accounts).

Isn't it the other way around? The bank is issuing a zero interest loan to the currency user? What benefit does the bank get from there being more Berkshares out in the world?

Re: BerkShares

#76

Post by userbinator »

JustAnotherPat wrote: post #17

why not create a crypto version that would be distributed to current currency holders? Get rid of the costly cash and you can sell it worldwide if you want to, while Berkshire residents control voting rights on the blockchain. With current crypto prices going sky high, bring some real money into the economy.

...and thus begins BerkCoin... a name which surprisingly hasn't already become a cryptocurrency.

Re: BerkShares

#77

Post by gcb0 »

outsidetheparty wrote: post #56

Greetings from Berkshire County! BerkShares don't actually exist, as far as I can tell. I occasionally run across news stories about them, but I've never seen one and have never met anyone who's ever seen one (and I've asked around, because it's weird seeing news stories about things in your hometown that as far as you can tell don't actually exist.)

For the real thing, Brazil have Local Currencies that are used to foster money lending by banks to small and poor communities. The idea is that the money lent in better terms than elsewhere, will not be used outside of the community.

https://en.wikipedia.org/wiki/Banco_Palmas#Local_Currency

more sources in portuguese (in case anyone want pictures)

https://solidu.wordpress.com/2009/03/27/41-moedas-sociais-ci...

http://g1.globo.com/economia/noticia/2014/04/numero-de-moeda...

Re: BerkShares

#78

Post by Tinyyy »

ww520 wrote: post #53

So the issuing banks print a BerkShare, sells it for $.95US to the public, and got to keep the $.95US. Hmm, anything that I missed that would dampen my enthusiasm to be an issuing bank?

You just described cryptocurrency.

Re: BerkShares

#79

Post by lxmorj »

TuringNYC wrote: post #37

Very similar to Ithaca Hours ( https://en.wikipedia.org/wiki/Ithaca_Hours ) which were sparsely used in Ithaca at the farmer's market while I attended Cornell

Sparsely used, but talked about ALL THE TIME

Re: BerkShares

#80

Post by littlestymaar »

em3rgent0rdr wrote: post #33
sandworm101 wrote: post #19

Earlier quoted context omitted.

It is barter, goods for goods. The profit is still taxed. This is not technically money in that it is not backed by a government. It's just bits of paper. Printing your own probably isnt a horrible crime, more a copyright violation or fraud rather than a felony. That people assign value to these bits of paper is no differnt than bitcoin. If a bank wants to sell bitcoin, or buy them, it can. The regulations re whether…

> "This is not technically money in that it is not backed by a government." Being "backed by a government" is not a necessary condition for something to be money. From wikipedia: "Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context . ... Money is historically an emergent market phenomenon establish…

> Even though most contemporary money systems are fiat, that doesn't mean that all money has to be.

If you want to avoid deflation you need a supply of money that grow at least as much as total wealth (otherwise the relative value of money is increasing => deflation). That's why gold-based currency are now considered a bad idea (and crypto currencies also, see [1] for illustrations about the deflationnist situation in bitcoin).

[1] http://avc.com/2017/08/store-of-value-vs-payment-system/

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