How are FencyCoins worth as much as USD?

First, let's define what currency actually is...

Currency is any financial instrument that has value in commerce or trade.

When we think about what that means, technically a punch card with 10 holes in it from a coffee or sandwich shop is a currency. It's worth the $3-4 in value that the shop assigns to it.

We know two things:
  1. There are currencies that are widely accepted anywhere and by everyone (USD, GBP, EUR, YEN, AUD)
  2. There are more private and restricted currencies that are not as widely accepted (Disney Dollars, rewards punch cards, each US state used to print their own currencies, and consumer retail gift cards)
Fency is the middle ground. FencyCoin (FC) currency is restricted to a certain area, yet widely accepted by multiple merchants in that area. It would be like being able to take Disney Dollars across the street to Sea World!

FC have value because merchants and consumers accept and spend them [FencyCoin is a community currency]

With fiat currency, a government or bank says your currency has value, and it costs you money to move it around. FencyCoin is local community currency; accepted by your friends, neighbors, local merchants who give it value. And FC's location restrictions mean that your money stays circulating in your local community, not transferred immediately somewhere else around the nation or globe right after a card gets swiped.

All FC are valued 1-1 to the local fiat currency they're earned in so there's no volatility their worth.

1 FC = $1 every time!

Article ID: 19, Created On: 7/10/2018, Modified: 7/10/2018

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