|Energy-backed currency concept
Remember the good old days when gasoline only cost $1.50/gallon way back in the ancient times of 2000? Why does it cost more than double that today ($3.71)? A gallon of gas is still a gallon of gas, so it seems obvious that the dollar has lost value.
This rapid devaluation of the U.S. dollar makes it an unstablemedium of exchange and certainly not a good store of value — two aspects considered to be the main functions of money. This has led many to examine the flaws of the current monetary system and search for possible alternatives.
Some have suggested that returning to the Gold Standard (pegging the dollar to gold) will help control the fraudulent expansion of the money supply and protect the value of the currency. Others say eliminating the interest attached to each dollar created will get rid of scarcity and provide abundance. Each of these ideas has merit since they correct some of what’s broken, yet they both also have flaws which make them difficult to fully support.
One interesting alternative that has been proposed is using an energy-backed currency. The idea is not new. Thomas Edison envisioned an “energy dollar” after seeing the value of electricity, and Henry Ford also conceptualized backing a currency by a “unit of energy” instead of gold. Motivated by the failed monetary system during the Great Depression, Ford even planned to support the idea with his own electric dams. Of course the central bankers scolded Ford’s idea because it threatened their schemes…