Sorry I am not sure what the "possible solution" is. Bit coin does appear to be the best option at the moment. The government will pursue a way to tax bitcoin transactions when it becomes big enough.

Possible solution?

Create a bitcoin-only store and supply chain? Operates online as well as a physical location. Like Wal Mart could sell anything from clothing to food. Could the government even tax it if it were purely housed on the Internet an never sees USD transactions?

In this modern age of satellite images and aerial drones hiding could be impossible. Hiding in plain sight might be easier. Growing a business and keeping it a secret is difficult.

Intriguing ideas. A virtual Gulch would be fun, and an exercise in possibilities, but in the end could only be a simulation. A REAL Gulch would be possible, albeit illegal to the United States, but could in fact be modeled after the one in the book. In fact it probably does exist somewhere on some level, and if it's known about, probably regarded as a cult compound. Sound familiar?

Corrected link
http://secondlife.com.

Second Life is the largest 3D virtual reality space where people can buy land and build for themselves or any kind of group. It has it's own currency which can be exchanged for world currencies. http://secondlife.com.

The SL client is free or one can buy a basic membership for free land and house etc. SL has been eclipsed by facebook and twitter for social purposes. SL is really a 3d world and one can learn to build and create products. SL requires good computers and is still a work in progress. To own one's own servers with land can run a company, individual or group a few hundred a month, depending on size.

SL is full of people with big ideas. Looking in the Sl directory I see an Ayn Rand Objectivist group and a couple people naming their land Galt's Gulch.

I don't know anything about 2nd life. How would this work?

Use Second Life to make a 3d virtual Galts Gulch.

I like your idea of developing a network. The free market should weed out the unsuitables. Products? Survival packs? Cool! I also want to thrive. As the rest of the country spirals down. We producers could be expanding our influence and standard of living. New products and technology could be made and sold in our virtual Gulch. Check out my post for a Reality TV show in the producers lounge.

Interesting... So what backs the bitcoin? Where can I learn more?

As Susanne suggests, there's no need to re-invent the wheel here. BitCoin is an alternative currency which is threatening to become a parallel -- perhaps one day a real rival -- economy, which the State hasn't figured out how to get its dirty grubs on yet.

The point behind a Virtual Gulch is other currency has no value. We are trading with each other. Silver, gold, and copper pieces are our currency

Legally only the Federal Government can issue a currency. We could barter with silver, gold, and copper pieces. This works on a face to face transaction. I wonder if our Bank of the Gulch could do online transactions.

I could see it kind of like on a BitCoin or Barter-based beginning, backed (as in the gulch) by a solid metal standing - Gold, Silver, Copper, Lead, etc. It would be much like the coinage in the Gulch - it would be an equally agreed point of value, and only those who subscribe to it would be able to exchange into and out of the system... As to a specific solid coinage, you would need a neutral and secure depositor for the value( the Bank of the Gulch) and if it somehow came to physical instruments, a mint that would be 110% trustworthy to take the specie and turn it into coinage of the realm.

Who has the foggiest idea how to do this? Pipe dream as it may be, however, it is certainly a worthy pursuit. First, it must be developed on the symbolic level. Then, it should be graduated to the level of image, and finally, it must become substantial. I hope this is a good indication of the course your idea must travel.

coincidentally i live in montana believe it or not, anyway i'm no specialist i'm just going off of my common sense here but transferring currency should be easy whether its physical or virtual compared to other issues, i'm more concerned about it having any value or being unaffected by outside influences and be a arbitrary currency, for example you are forced to pay taxes and pay for food and that kind of stuff but how does the currency accurately get converted into dollars when the dollar may or may not be worth as much, forcing the prices of items to reflect the currency of the dollar so that the only difference is the fact that you are paying in a different currency and the numbers are higher or lower but its still the same value, the world economy works the same way as the dollar gets converted into other currencies based on each others value and the only difference when say you go to china is the fact that it may be easier to make more money in the US but the value has not changed, it is not arbitrary in any way.. it gets really complex when you ask yourself why your currency may be worth more and gives the illusion that their items are cheap but that is where it gets too complex for my taste right now, that said there are many online virtual currencies such as bitcoin for example. i hope i made sense :P bottom line is whats the point of using a different currency if its not completely or mostly arbitrary?

The currency would be an issue. If I buy hay from a farmer in Montana how do I pay him from Washington? Could I take gold to a bank in WA and he make a gold withdrawl from a bank in MT?
Any money people out there?

As I thought about this after posting my reply we do create a Virtual Galt's gulch every time we spend our money. Where do you go to buy stuff from? Where was the stuff you buy made? Do you worry about these things? If not you are supporting looters all over the world.

I have for about 5 years now moved away from places like Walmart to locally owned and operated stores and goods. The largest cost to myself has been time, the time it takes to find something made or produced locally verses something made in China. The time it takes to find something produced by a friend who is like minded rather than some big government moocher. A little more cost as well, but that has really been fairly minor (about 10% more) by comparison to the extra time.

I think to some extent we can, through voting with our money control whom we support.

Very interesting concept. Not the first clue as to how to create either. We need a good banker who understands currency well enough to set up, or we could pattern Hamilton's original US bank which I sure has some flaws, but when Jefferson became presedent and attempted to get rid of it he was advised that it was the best financial system ever devised and to remove it would cause great harm to the US, so he renewed it.

UPS is not as hard, there are good hard working independent truckers all over the US. I have known a couple of these types myself. If I have some hay to sell right now I get in touch with one of them and sell it (through them) to people in drought areas as even with the shipping costs I still make more money than selling it locally. My point is you do not create a UPS you use the independent truckers when you need product moved from one area to another.