Big MacCoins vs. the US Dollar

By: Tho Bishop
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McDonalds has announced that they will be releasing MacCoins in celebration of the 50th anniversary of the Big Mac. While crypto-related gimmicks have proven to be profitable, there is no blockchain involved, instead customers will receive a physical coin whenever they purchase a Big Mac. CNN Money reports that McDonalds has 6.2 million MacCoins ready for distribution.

On social media, I’ve seen conversations about whether MacCoins, at 1:1 part with a Big Mac, would be a more effective store of value than a traditional Federal Reserve dollar. If the chain was willing to honor MacCoins indefinitely in the future, the answer would appear to be yes. Looking at the Big Mac Price index, a measure The Economist uses to track Purchasing Power Parity between foreign currencies, the price of a Big Mac has risen over 300% in the past 32 years. In fact, as D. H. Taylor has noted, the Big Mac is an American staple that has seen its price rise dramatically more than official CPI numbers. 

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Unfortunately Ronald McNixon will closing the Big Mac window at the end of the year, rendering the MacCoins to simply nominal value. Of course, if we had a system of competing currencies – as Ron Paul has long championed – it would be fun to see what sort of experiments would emerge in money. Senator Rand Paul openly discussed currency backed by private stocks during his presidential campaign, while the rise of cryptomania has even smalltime pizza companies looking at ways to provide additional value to workers. 

Eliminate taxes on alternative currencies and ending legal tender laws would not only open the doors to monetary innovation but help empower Americans to new ways to protect their savings. Because at the end of the day, I would much rather trust the Hamburgler than those currently in charge with the Fed. 

 

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