[P2P-F] Freicoin - Bitcoin with Demurage (Kevin Flanagan)

[Kevin Flanagan]

Hello,

Sorry for the delay in replying. First of all I'm not involved with
Freicoin I just posted because I thought it might be of some interest.

I looked into Freicoin in a little more detail at the weekend. It turns out
the demurrage is automatically distributed to coin miners. The reason for
this is to encourage miners to secure the network.

I'm not familiar with Silvio Gesell's work on demurrage. I'm assuming he
intended  the currency to be introduced and managed by a state. This is
very different to Freicoin where there is no state.
Demurrage works differently in these situations.
I can imagine it working if it was implemented as the monopoly currency of
a state.
However as just one of many in a market of currencies I can't think of any
reason other than the political to use freecoin :(  ??

http://blog.p2pfoundation.net/freicoin-bitcoin-with-demurrage/2012/06/30

Regards

Kevin





On 30 June 2012 15:00, Poor Richard <poor.ricardo at gmail.com> wrote:

> Thanks you, Apostolis. That is a relief. I hate to feel like the only guy
> in the room who doesn't get the idea.
>
> Richard
>
> Date: Thu, 28 Jun 2012 21:04:14 +0300
> From: Apostolis Xekoukoulotakis <xekoukou at gmail.com>
> Subject: Re: [P2P-F] Freicoin - Bitcoin with Demurage (Kevin Flanagan)
>
> To: P2P Foundation mailing list <p2p-foundation at lists.ourproject.org>
> Message-ID:
>        <CAOX4E5Et6FoJro1zi4ong1EcENFig3k5xQxhYd0fCLQnPSFLYQ at mail.gmail.com
> >
> Content-Type: text/plain; charset="iso-8859-1"
>
>
> *I wholeheartedly agree with you Richard.
>
>
> *
> 2012/6/28 Poor Richard <poor.ricardo at gmail.com>
>
> > What do I not understand about demurage--how is not equivalent to a flat
> > tax except that it doesn't go to the public treasury where it might do
> some
> > good? Doesn't it discourage workers from saving at the same time it
> > discourages the rich from hoarding? Doesn't inflation already cause US
> > dollars to gradually evaporate? I don't see how demurage helps
> redistribute
> > wealth downward like a progressive tax does.
> >
> > I don't get it.
> >
> > Richard
>
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