There's really nothing wrong with paper money as long as it's irrevocably backed by the Constitution & there's nothing really to say against having markets in alternate currencies. The current problem is that the Gold Standard was severed back during the Nixon Administration & it's been downhill ever since they tried to link currency as the Oil$; the OPEC nations benefited most because it was funneling US$ & other national currencies to benefit the rise of terrorist-ruled regimes.
The biggest part of the "cure" is to first re-establish the Gold Standard to our currency (Article 1, Section 10, Clause - No state shall make any Thing but gold and silver Coin a Tender in Payment of Debts); Second, would be to either abolish the Federal Reserve Bank or bring it directly INTO Congress so that the Oath of Office can be applied to everyone who will be a part of it (Article 1, Section 8, Clause 5) so that the control of interest rates & other measures will measure up to Constitutional Compliance. The use of any type of material currency (even paper) still works as long it's backed by the Constitutional Standard of Gold & Silver.
Something else might help; Executive Order 1110 (by JFK himself, no less) was enacted but after he was killed, the banksters quietly pulled Constitutional currency out of circulation, a bit of legislative maneuvering allowed the EO to quietly fade away.