What backs a currency?

We used to have gold coins, silver coins.

Some would say, the intrinsic value of the coin was its content, but this was not true, it was the symbol on the coin.

The symbol was the value, by common consent the value.

A ten euro note, is only ten euros by common consensus as to the value.

Symbols can be digits on a computer, can be a crypto-currency like BitCoin or StartCoin or FairCoin.

There are those who wish to revert to the gold standard, a currency backed by intrinsic value.

We could though turn this around, the gold has value because it is easily convertible.

Gold is not that useful. Try carrying around ingots of gold.

Bushels of wheat, cows, all can all be a currency.

A currency has two basic functions, two side of the coin we could say:

  • store of value
  • medium of exchange

When we wish to acquire something, we can barter, you have what I want, I have what you want, but only works if these two conditions satisfied.

With a medium of exchange, we can agree to buy or sell.

Store of value has problems, hoarding, accumulation.

Whatever our currency is based upon, we will try to maximise.

What if our currency was based upon forests? We would increase our wealth by maximising forests.

This is what WoodShares attempts to do, at least it could, only it does not.

If I go to a bank and say I want to borrow a million dollars to buy a forest, the bank will ask me what I wish to do with the forest. If I reply nothing, the bank will show me the door. If on the other hand, I say I wish to cut down the forest, sell off the timber, develop the land, show the bank what return I will make on my one million dollars investment, the bank will ask me are there any other woods I wish to buy.

WoodShares is a commercial forestry operation. Buy land, begs the question what was there before and being displaced. Participate in the discredited carbon trading operation. At the end of the cycle, when the trees have been harvested, ie clear felled, sell off the degraded land.

WoodShares therefore far from being a currency backed by a natural asset, is in reality a crowdfunded commercial forestry project. Neither is WoodShares a green project.

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3 Responses to “WoodShares”

  1. WoodShares (@woodshares) Says:

    Do you know that the maximum capture of CO2 is developed only while the trees is growing?

    WoodShares is a DCO project where its members will decide at the end of the cultivations if it should continue with another new cultivations after the previous has been harvested or just sell the land. We hope and expected that the members have the same ecologic aproach that the project has and continue with the cultivation of the lands.

    So, it is a green project that contributes with the capture of CO2, produce commercial timber of high quality that will avoid in some part to the sale of illegal timber from natural forests, generates direct and indirect employment for the community and economic benefits for its members.

  2. keithpp Says:

    WoodShares is a commercial forestry project and no amount of greewash can present it as anything else, It is not a green project.

    Carbon credits is widely discredited.

    Land is being cleared for the commercial forestry, which, has very little ecological value.

    As the trees grow, CO2 is absorbed, as the tress die, CO2 released. It is known as the carbon cycle.

    The exception in rainforests and old growth forests, where there is an accumulation of biomass, and thus accumulation of carbon.

    If this was a genuine green project, you would be safeguarding old growth forests, rewilding.

  3. WoodShares (@woodshares) Says:

    Actually, 5% equivalent of the timberlands cultivated will be destined to reforestation ends.

    Lands that are going to be used to this project are poor and deteriorated soils that are going to be recuperated with good cultivation technics.

    Cycle of CO2 will return the CO2 contained on the biomass to the atmosphere of this wood is used as combustible, not if it is used as raw material,e.g., in construction.

    I don´t know if what you said about CO2 credits are true, what is true is that WoodShares project is going to capture it and contribute to improve at least a little with our environment and the community.

    By the way, what are you doing for our planet?

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