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Message:: [QUOTE="900fine, post: 358678, member: 6036"]The question can also be posed "If coinage was the absolute best solution, why don't we have all our money in coinage ?" Hopefully, many reasons present themselves and need no discussion. There was a time when precious metal was mandatory and few would accept paper, so coinage was mandatory. That's one reason we don't make all our money in paper. No one seriously proposes all money in paper (paper 5c ? 10c ?), just like no reasonable person proposes all money in coinage. It doesn't have to be all one way or the other (coins vs. paper). It makes sense for small denominations to be coinage and larger denominations paper. The question is where to crossover from coin to paper. Some folks think that should be at the $1 denom, others at $5. Much ado about nothing. It's just not a compelling issue for 95% of the population. Virtual money is best, and an increasing portion of commerce. Over time, there will be more $1 coins circulating, partially due to vending machines. Increased product prices will make $1 coins more attractive there. More and more, folks will put in a $5 bill and get $1 coins as change.[/QUOTE]