Why doesn’t the sponsor use third-parties to ensure a level of trust?
Certainly, there are a number of scenarios available to ensure, if not insure, that parties doing business on the Internet are trustworthy. The problem we have with such proposals is that they all charge fees, which then begin indirectly to inflate the private currency. In addition, while such fees may seem normal, typically about .5%, for the sale of most goods and services; the money markets tend to be very efficient, thereby reducing the spread between the wholesale and retail costs substantially. As an example, one-half percent surcharge on the purchase of TIPS is huge. Right now, you can purchase TIPS in million-dollar blocks for about 1/32 of one percent (or .003125%). A fee of one-half percent is 16 times larger. Our goal is to make the market for the private currency as efficient as possible, which thereby drives down the cost of the private currency to our users. If we begin to add-on fees to promote “trust,” then it is unlikely that we would be able to discard them later. As
