Kansface's reply is really good. Hayek also wrote a great paper on the subject in 1990. In it he quite presciently predicts the current conundrum of the euro z

Kansface's reply is really good. Hayek also wrote a great paper on the subject in 1990. In it he quite presciently predicts the current conundrum of the euro zone and makes the case for competing physical currencies. He realized that this would never happen in his lifetime but went through the the intellectual steps nonetheless. Virtual currency could make his thesis possible. Check it out if you're interested: http://mises.org/library/denationalisation-money-argument-refined http://mises.org/library/denationalisation-money-argument-re...