So why would a reasonable actor choose to store money in this currency when there are easier to get, easier to use, demurrage free currencies available? I get the economic idea (I think) but it seems like something that would need a near monopoly to succeed. Otherwise it will just be a money pit for idealistic enthusiasts.
Freicoin - easy-to-use demurrage currency
71–80 of 90 posts
Re: Freicoin - easy-to-use demurrage currency
#72Some of the comments in the FAQ don't make any sense. Q: Why does Freicoin use demurrage? I'm worried that my coins will just fade away. A: Worried? It's a good thing. If the amount of money was stable, people would prefer saving it as opposed to spending it. This would decrease the quantity of money circulated, which in turn would act against the main purpose of money - a medium of exchange. With demurrage in place,…
He means Islamic bank, which is basically a bank without riba. If you are interested you should look at wikipedia articles [1] and [2]. Funny thing is in Iran, which considers itself an Islamic country and says it follows Islamic laws in banking, interest rates are as high as 20%. [1] http://en.wikipedia.org/wiki/Islamic_bank [2] http://en.wikipedia.org/wiki/Riba
Fun fact: Charging interest used to be against Christian principles aswell. Instead people would borrow from Jews (who did charge interest). The Magna Carta (in England) has sections on what exactly happens if someone ones money to Jews and dies (for example).
Re: Freicoin - easy-to-use demurrage currency
#73These are similar to concepts North Korea still cannot prove... I'm concerned that in the FAQ the creators think that private banks control money supply. While inflation and deflation are often painful, they're also the reason why cyclic growth is possible. Once upon a time, cycles enabled an American middle class. I'm optimistic we can revive that with historically effective method.
We all agree central banks stink in a recession, they are somewhat limited in what they can do, but during growth they double the fun.
I see the creator is intending income equality, and I think that's definitely just and purposeful. More research required.
Re: Freicoin - easy-to-use demurrage currency
#74Q: What is the Freicoin Foundation? A: The Freicoin Foundation is a non-profit organization, aiming to support sustainability and biodiversity by integrating Freicoin into economical relations. Q: You said that Freicoin is decentralized. But the Foundation makes it centralized! A: You are right. But we have no other solution. Initial coins should be distributed to the society. Q: Why can't you just give these coins t…
My gut tells me that somehow there is room for a "everyone gets N" style ~~ virtual currency ~~. Like you prove your identity and get the same amount that everyone else gets (scrubbed on transfer) because the whole early-adopters-win thing is sucky. But this doesn't look like the answer.
This is basically what OpenCoin/Ripple is trying to do, but a lot of people don't trust them.
Re: Freicoin - easy-to-use demurrage currency
#75complete and utter scam
Why do you think it is a complete and utter scam rather than just something that won't work?
One most of money generated goes to the central reserve to use as they see fit.
Two; Freigeld was advised as local and not global currency. The more its spread over the world the easier it is to manipulate.
Re: Freicoin - easy-to-use demurrage currency
#76Earlier quoted context omitted.
Except that model train manufacturers can raise production to maintain a price equilibrium (and have an incentive to do so, namely the profit they make from producing trains). Nobody can manufacture any more bitcoins than the algorithm allows. Now if you convince me to get into collectible model trains, say pre-war Lionel models, the supply of which is fixed, that will raise the after-market value of your pre-war Lio…
So, you're saying all collectible markets are also ponzi schemes?
I didn't say anything was a Ponzi scheme. For starters, a Ponzi scheme involves fraud ...
Re: Freicoin - easy-to-use demurrage currency
#77Earlier quoted context omitted.
Except that model train manufacturers can raise production to maintain a price equilibrium (and have an incentive to do so, namely the profit they make from producing trains). Nobody can manufacture any more bitcoins than the algorithm allows. Now if you convince me to get into collectible model trains, say pre-war Lionel models, the supply of which is fixed, that will raise the after-market value of your pre-war Lio…
so you're saying that gold is a ponzi scheme ?
Gold is a lot of silly things but it's not a Ponzi scheme.
Re: Freicoin - easy-to-use demurrage currency
#78Earlier quoted context omitted.
Yes. Well, qualified yes: I don't believe that the new cryptocurrencies are more of a pump-and-dump than Bitcoin is. The pump-and-dump model is intrinsic to why Bitcoin is popular: creating lots of widely distributed coins early, then making them increasingly dear, creates a built-in base of... let me be charitable and call them "cryptocurrency evangelists", who have high incentive to go to their local online waterin…
I like some of the concepts behind this freicon, it disincentives pump and dump and pyramid schemes. I personally will never put money in bit coins because it is like a pyramid scheme. Again what we really need is probably frictionless digital payments, not another currency.
You should never put money in freicoins either. Rather you should use it for buying and selling things, and just keep enough at hand for cash-flow purposes. What we want is a frictionless medium for digital payments, with good economic properties. Bitcoin doesn't offer that.
* Disclaimer: I'm one of the creators of Freicoin.
Re: Freicoin - easy-to-use demurrage currency
#79Earlier quoted context omitted.
Yes. Well, qualified yes: I don't believe that the new cryptocurrencies are more of a pump-and-dump than Bitcoin is. The pump-and-dump model is intrinsic to why Bitcoin is popular: creating lots of widely distributed coins early, then making them increasingly dear, creates a built-in base of... let me be charitable and call them "cryptocurrency evangelists", who have high incentive to go to their local online waterin…
I like some of the concepts behind this freicon, it disincentives pump and dump and pyramid schemes. I personally will never put money in bit coins because it is like a pyramid scheme. Again what we really need is probably frictionless digital payments, not another currency.
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Re: Freicoin - easy-to-use demurrage currency
#80One 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.
Why would you say no to accepting freicoins, if you could immediately turn around and convert that into whatever currency you do want to hold?