Creating Your Own Loom Currency

Submitted by Bill St. Clair on Thu, 03 Jan 2008 23:39:38 GMT  <== Loom ==> 

This is the third in my series of articles about the Electronic Accounting System. Click the "Loom" category at the bottom of the article to find the others.

One nice thing about Loom is that it allows you to create your own asset types, your own private currencies. In a comment to his Digital Money World article, A Brief Loom Instructional, Mark Herpel described one unusual "currency":

(1) The Boy Scouts of Amerika, set up their own Loom to trade and transfer between their Scout region. Their unit of value is "Scout Hour" and each hour is worth one Boy Scout visiting your establishment and working manual labor, your choice, for one hour. Perhaps they have a money raising campaign, selling hours in their community, cash comes in and Digital 'Scout Hours' go to each person or business in the community who buys one or two for charity. Once the work is accomplished, the 'Scout Hour' is moved back to the 'Scout Account'. As long as everyone in the community realizes that one Scout Hour is the equivalent of a Boy Scout sweeping their warehouse or raking their lawn for exactly one hour, everyone could use the units and envision exactly what that value = one hour of work.

If I wanted to set up a digital currency backed by gold stored in my gun safe in my basement, I could easily do that in Loom. First, I'd create two new asset types, "Gun Safe GoldGrams" and "Gun Safe GoldGrams Reserve". The former will be what I issue to people, and the latter will be to keep track of how much actual gold I have in my safe. Then I can easily see if I'm about to give out more Gun Safe Gold than I have in reserve, and buy more gold (or decide to risk being a fractional reserve banker, which no self-respecting Loom trader would do).

Here's the screen creating the "Gun Safe GoldGrams". I clicked on the "Random" link to generate the asset type, and typed in the Nickname, Scale, and Min Precision:

Adding a Loom Asset

Next I created a "Gun Safe" location to hold my "Gun Safe GoldGrams Reserve":

Adding a Loom Location

Finally, I recorded my two-pound gold nest egg by transferring grams of "Gun Safe GoldGrams Reserve" to the "Gun Safe":

Adding a Loom Location

Now I'm ready to start selling Gun Safe GoldGrams, and moving them to transfer locations for my customers (well, I would be ready if I actually had a two-pound gold nest egg). As long as the number after the minus sign in the "Gun Safe GoldGrams" row remains smaller than the number in the "Gun Safe GoldGrams Reserve" row, my reserve is sufficient to cover my currency in circulation, and I'll sleep well at night.

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Comments (2):

Patrick keeps track of his real gold in a different folder

Submitted by Bill St. Clair on Fri, 04 Jan 2008 02:41:15 GMT

Patrick keeps track of his real gold in a different folder. That folder is the issuer of the real gold asset type. He issues, to a location shared with his transaction folder, the amount of real gold in his safe.

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Gold Standard

Submitted by Gun Cabinets on Mon, 01 Jun 2009 19:26:49 GMT

If only we all had to the wisdom to do save on a gold this long ago, we could making a lot of money right now. The gold standard is the most stable form of currency, no doubts. Looks like the Loom System would be the way to keep track of that gold. I'll have to dive into that some more.

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