31–40 of 90 posts
In other words, saving money is completely disincentivized in favor of constant spending? Why would anyone adopt this?
The fee is really no different from inflation in fiat currencies. Why would anyone save dollars when they are worth 1-2% less every year?
I'm not calling the concept of BTC-style cryptocurrency a deliberate, malicious pyramid scheme in itself. I think this is an unintended side-effect.
One does not simply invent a currency to solve a percevied problem in our economic system. A currency must also provide compelling economic reasons to actors for adoption. That is, what is in it for me to use freicoin? I don't see any reason to give money, buy, or sell, or do anything with freicoin. To me, the fact that freicoin decays when not used is a bug, not feature.
> That is, what is in it for me to use freicoin? Perhaps the advantages of bitcoin but without the instability. If bitcoin continues to go through boom and bust cycles that change its value by orders of magnitude, then ironically an alternative with demurrage might prove to be a better store of value. You might lose some of your savings, but at least it'll be predictable.
Being conditioned like this, wouldn't that deter early adopters? I mean, what would incentivize them?
Who does the demurrage fee go to? I couldn't find any information about this on their site. If it is just recirculated through re-mining or something, great (though I don't know how that would work). If it goes to the creators of freicoin then it is a blatant scam. I don't suppose it does, but it's suspicious that they don't mention where the money goes.
Earlier quoted context omitted.
Encouraging currency to be used/passed around more is not a bug for me. Might interest you: http://www.lietaer.com/2010/03/the-worgl-experiment/
Encouraging currency to be used/passed around more is not a bug for me. I never doubt your goal, just the ability of your currency to achieve what you are trying to get. Might interest you: http://www.lietaer.com/2010/03/the-worgl-experiment/ I have no reason to doubt the story as told there(other than my theoretical complaint), but I am not a historian or economist.
Economists have not proven themselves credible.
In other words, saving money is completely disincentivized in favor of constant spending? Why would anyone adopt this?
People are complaining about bitcoin's deflation meaning people are too incentivised to save rather than spend/invest The fee is really no different from inflation in fiat currencies. Why would anyone save dollars when they are worth 1-2% less every year?
I think the issue with bitcoin is that it's very very new. My guess is that it will eventually stabilize. On top of that, I hold the Rothbardian view that competing currencies are a good thing. Freicoin would only work if it had a monopoly on currency adoption.