MONEY: Considerations of Currency …Cash or Cashless. FIAT, Virtual, Foreign exchange, futures trading.

Bitcoin is a possible option used as a universal currenty. Im not sure how it relates to being used as a local community currency and wonder if it can and is manipulated by the Powers of governments throughout the world. I have been reading up about Bitcoin and to put it into layman's terms it seems The system is peer-to-peer; users can transact directly without an intermediary. Transactions are recorded in a public distributed ledger. The ledger uses bitcoin as its unit of account. The system works without a central repository or single administrator, bit coin can be describes as a decentralized virtual currency. Sometimes called a crypto currency or described as the first decentralized digital currency. It is the largest of its kind in terms of total market value.

For me as a citizen of NZ and my local community I like to use a range of currencies from local community printed currency, A debit / credit virtual ledger trading currency, A timebank debit/credit record currency. A simple notebook record of debit/credit trade I do within my neighborhood, All this along side my city habit of using bank services of debit visa and eftpos. I hardly ever use cash or debt based credit nowadays.

What strikes me is that NZrs are more and more using their own methods of buying and selling within their own communities. This is part of creating self sustaining, protected trading within their own area's and not becoming vulnerable to the influences of the power driven debt based banking system

This brings the question of tax. What sort of tax system would be used on either virtual currency or community currencies of trade

I favour 2 approaches in my system, an ability to earmark a flat tax on reward payments, and an insurance lottery that covers rewards for honest transactions.
As the lottery can only be won by people who haven't double-spent their money.
Where this works is a flat tax on the reward for processing the payments is able to be held in a specific account within the banking system registered to you (as we can't tell what fiat tax rate you are subject to, because we don't know your fiat income, etc.)
We then run a regular lottery for the proceeds of the insurance fund on transactions, fraudulent transactions that have tried double spending automatically result in an exclusion from the lottery for 3 months. The odds to win then reduce as the participants drop off.

The approach I use is to incentivise processing of parts of the payment block, then have a multiplied reward for completion of the processing of the payment block.

The issue with bitcoin is that it has artificial limits on processing, and that everything occurs on a single ledger, which constrains the speed, energy efficiency and distribution.

Sounds complicated and open to corruption.

Not really, anyone who tries to double spend the transaction is out of the insurance lottery, and so does not gain the chance to be rewarded regardless of how many times they have earned the rewards for the next 3 months.
This basically means that they are doing processing for free for 3 months if they falsify a transaction, which effectively brings about costs to those who try to be corrupt.
It does allow for debt to be created within a repayment schedule of returns from either processing transactions, or hosting traffic for enough time.

Either way, it is designed to encourage participation, and with microtransactions rewarding sharing and trading of content and traffic, it is a fairer system that does not favour the big players over those who have less powerful hardware.

I am working on a way to bring in know your customer, and anti money laundering could be covered by the insurance lottery, as that is a delayed reward draw that you can only win back if you are honest and fortunate.

In conclusion, it is slightly complicated, but not as much as fiat economies are.

All due respect to your work Andrew, Its taking a while for me to get to grips with concepts like an "insurance lottery" .
I hope you can understand my concerns with electronic currency being as complex as the current fiat etc but with new concepts and jargon to deal with.
Geek speak ( computers and IT) is a blinding issue for over 50's (this i know professionally) and financial speak is an issue for just about everyone who has not studied tertiary level economics or grown up in an accountant household.
I need to do more research (Aircraft engineering & librarian household).
The two together computing and electronic currency, does not leave many in the conversation at this time. ( you are possibly, ahead of your time).
The prerequisite of having to "educate the public" is a major stumbling block to
many a great ideas. "If only the understood".
It still may / probably happen ( a crypto currency world ) and in fact most people have imagined that we would eventually be a cashless system.
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De Bono has taught me that sometimes the way forward is back, sometimes sideways, sometimes up and sometimes out.
Buddha has taught me that a simple truth can still a cauldron of confusion.
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Just saw this on Facebook. http://yournewswire.com/japan-unveils-fingerprint-currency-to-replace-cash/
Japan is looking at replacing cash with fingerprints ?? What do you Think

Well if we are going to end up cashless then its better than a chip under the skin, or a bar code on the forehead or wrist as it requires no modification to the body. Every system is cheatable so perhaps it will only work once we have installed a UBI so that the incentive to low to be worth it.
The major issue is that fingerprints are liftable from surfaces with very low tech.