I’m confused
It used to be that paper currency was backed by gold and silver for its value. A 10$ paper note would be redeemable for 10$ worth of gold or silver following the gold or silver standard. Currently our bills are fiat money which means they are not backed by any tangible item. They’re just based on the strength of the economy. The economy can fluctuate so it makes the actual value of a bill unstable. These Mcdonalds coins, however, would be a currency that are redeemable for a Big Mac. This would make them a technically more stable currency as they are always have the value of a Big Mac they can be redeemed for.
This is absolutely true. And in addition, I’d like to add something.
The value of money over centuries is determined by the buying power of the currency. meaning that if you look at a dollar in the 1850′s, compared to the dollar now, you’d see that the older dollar had more buying power. Some of the highest paid workers in the silver mines made $4 per day. The buying power of the dollar has steadily dropped.
However…the buying power of these coins is always going to be a Big Mac. Which means that no matter what time has or will pass, it’s worth whatever normal currency it takes to buy a Big Mac.
So, if the Big Mac is currently $1.99, but in fifteen years runs $5.00…that McDonald’s coin will have gained buying power, when all other currencies have lost it.
bitcoin is out big mac coins are in!!!
McCurrency