The History & Future of Troptions

Troptions were a concept developed by Garland E, Harris some five years before Bitcoin was launched.  Instead of using cryptocurrency to finance speculation-driven cryptocurrency.  Rather, the concept was to create a digital currency that would be used as an medium of exchange used instad of cash.  Garland had a vision and understanding of a more fluid and less regulated currency that worked better than cash.

In 2003, Garland E. Harris founded the concept of a TROPTION in a business plan for a company called Global Trading Partners Corp.  The word “TROPTION” was the simple combination of two words – “Trade” and “Option”.  What used to be called barter is more accurately a "Trade Exchange" where items of equal value are traded.  The obvious issues is that many potential trades are unequal, so there was a need to put a system between the trade to "fractionalize" the deals.  Troptions are divisible into halves, quarters, tenths, one-hundredths, one-thousands and so on.  Therefore a man with a cow could value his cow at one Troption, and buy a chicken for 5% because of a way to divide the cow's value.  The farmer may also pay with the reamining balance for his rent, gas, groceries, and a nice pari of shoes.

The other challenge of trade exchanges is the "acceptance" of the system.  We are all familiar with dollars, but dollars have issues like inflation, bank regulations, and taxation.  Trade exchanges are able to resist these problems making them a smart choice.  Hold them and they tend to grow in value.  Spend them, and you save your cash for other things.  To achieve acceptance, it is vital to building communities that can accept Troptions for at least part of the exchange.  As a local Buyer's Club grows, local consumers are happy to make their purchases at participating business who adopt the trade credits.  Gradually as more and more businesses and customers agree to use the trade credits, businesses pay for what they need in trade credits and customers are loyal to these businesses.

Are Troptions Legal?

It is a good idea to read IRS Topic No 420 regarding the tax treatment of barter and trade exchanges.  The IRS acknowledges barter or trade exchanges as a legitimate practice.  They only require that any eventual profits realized pay the due obligation.  However, trade exchanges are most often non-taxable events.

In 2004, the creators of Troptions filed with the SEC under Rule 504, Regulation D.  Later in 2019, the Missouri SEC challenged Troptions in a complaint, but when the complaint was formally answered, the complaint ended with a Motion to Dismiss.