freicoin

[steveb]

There are many altcoins now besides bitcoin.
An interesting one, in my opinion, is called Freicoin, which combines the distributed ledger idea of bitcoin with the demurrage money idea of Silvio Gesell.
One criticism of bitcoin's deflationary character leads many to conclude that it has more potential as a store of value than as a transactional currency. Gesell's idea of money that looses value over time and therefore encourages spending and investment in community assets is widely accepted; perhaps the digital form will allow the manifestation of demurrage currency on a scale beyond the local examples that have demonstrated its effectiveness in the past-especially during crises of tight money.

freico.in/

[peterv]

I like the idea of demurrage - it ensures the money keeps flowing as a medium of exchange. However, if I have the choice between buying bitcoins or freicoins, why would I buy freicoins?

[steveb]

if I have the choice between buying bitcoins or freicoins, why would I buy freicoins?

I have been struggling with that one myself. Unless it was forced on people by circumstance or an authority, its hard to see how people would take it up. I can see how it is one of those things that could be good for a community but may not necessarily be seen as good for the individual- a bit like some altruistic ecological choices.

There is the notion of co-existing crypto-currencies, so bitcoin (which is generally regarded as being modeled on gold)would be your choice for a store of value, whereas freicoins could be sought after as a means of exchange. But this, or indeed any means by which wealthy 'hoarders' could continue to slow up the velocity of money, would defeat the main objective of demurrage currency.

So......one for after the revolution maybe..?