If I created my own currency backed up by USD. If I use a substance like a plastic, or metal coin bought online, for transfers, is it illegal?

In the united States. Article 1 Section 10 of the Constitution renders congress as the only power with ability to MINT coinage that’s used in US transaction. Currency (paper or electronic) you can legally do, although most fail several areas.  In addition to the obvious problems of acceptance (banks and merchants) you also need a way to police counterfeiting. At the time of the foundation of the US secret service(1865) it is estimated that 1 in 3 bills in the US was fake. That’s a huge invisible tax on the general economy because if a dollar should be worth a dollar its really only then worth 67 cents because so many fakes drags down the value of the currency. Creation of souvenir coins not intended to act as currency, however, is not illegal.” – Quote from Laws Related to the Issuance and Form of Currencies.

 Gold Elvis Commemoratives – EBay (Note Dollar values)

Bitcoin (cryptocurrency) can be made (mined) at home, is widely popular, electronically based, but must be subject to taxes, and not a physical coin.  You can buy a token or souvenir coin with the Bitcoin logo, but it is a novelty, not representative or linked in any way to the crypto currency.  One unusual exception is the Casascius physical bitcoin, which had a chip implanted in it.

FYI, you can buy or mint actual Gold or silver coins, and they would be worth the value of the base metal, which can be in USD. Note the Elvis coins above.

You can use your coins as a method of exchange, based on their bullion or collectible value.  For example, a 1oz Gold coin is pegged to the value of an ounce of gold. Please make sure you work with a lawyer on your team to make sure you are not breaking the law, by declaring your coin legal tender.  If you do decide to make your own currency, as opposed to a novelty coin or souvenir/commemorative coin made out of a precious metal.  (Note: I am not an attorney, this is just what I got from the web – my opinion does not constitute legal advice).

Good luck in your quest!

Disclaimer: I own Gold and silver coins. If you liked this, please repost and like!

The Last Word:

Copper is expensive, should I be saving my pennies?

Hoarding pennies

The value of the penny is pinned as 1/100th of a US Dollar. The value of a dollar changes all the time, as does the value of the copper and zinc in a penny.

There have been proposals in Congress to eliminate the penny:

“Two bills introduced in the US Congress would have ceased production of pennies, but neither bill was approved. Such a bill would leave the nickel, at five cents, as the lowest-value coin. On February 15, 2013, President Barack Obama stated his willingness to eliminate the penny.” – Penny debate in the United States – Wikipedia

As to why there is zinc in the Penny:

“The cent’s composition was changed in 1982 because the value of the copper in the coin started to rise above one cent. Some 1982 pennies used the 97.5% zinc composition, while others used the 95% copper composition.” – Penny (United States coin) – Wikipedia

What is the cent (Penny) worth?

“That made the value of copper in each penny worth about 1.4 cents. The meltdown value of a penny was 40% more than the face value. Copper moved to a higher price at the end of 2016 of around $2.70 per pound, making the value of copper in older pennies even higher.Aug 18, 2017″ – As Price of Metal Has Risen, Copper Penny Is Worth More Than One Cent – from the Balance.

Do people hoard pennies?

“Over the last few years, the market for copper has skyrocketed. Just last January, the market peaked at $3.649 per pound. At 146 pennies to a pound, a single penny’s copper has a value of about 2.5 cents.
That’s not a bad deal! Get a penny for 1 cent and sell the copper for 2.5 cents? How often do you find an intentionally undervalued investment that is easily purchased?
If you think that making money on your pennies is too good to be true, there is a catch. It’s illegal to melt down currency and sell as scrap. Also, there is no crossing the border with your penny bags either. It’s illegal to leave the country with more than $5 in pennies. Most penny hoarders are stockpiling their currency in the hopes that the law will change and allow them to finally cash in on their stockpiles.” – Why Some Americans Are Hoarding Their Pennies…. (Literally).     

Even better than the value of the copper, is the collectible value of older pennies.  Specific years, even in circulated condition, have value in excess of the .01 cent face value, and in excess of the copper value.   I use eBay as the yardstick for the current value of any specific year penny.

Now that you have my 2 cents, enjoy your pennies (especially the ones minted before 1982). You can purchase bulk pennies on Amazon and Ebay.

Here is a way to make your pennies more valuable – by adorning yourself with them! (links in pictures open in a new tab)

Lucky Penny PendantDouble Keychain Set 2017 US One Cent Penny Keychains with Heart Around Year; 1 Year Anniversary Gift, Couples KeychainNovelty Silver Toned Washington D.C. Lucky Penny Spinning Centre Key Chain, Washington D.C. Souvenirs

Disclaimer: I own pennies (not a lot), some silver and gold coins, and don’t hoard pennies because they weigh so darn much!

Thank you Wikipedia and The Penny Hoarder for your research, quoted above.

If you enjoyed this article, feel free to repost and share! Thanks!

Last Word: