Author

Topic: Freicoin, demurrage and spending vs hoarding (Read 964 times)

hero member
Activity: 924
Merit: 1000
September 16, 2014, 09:01:04 AM
#7
Has anyone taken a look at the insane spike FRC/XBT had last year? http://www.cryptocoincharts.info/v2/pair/frc/btc/cryptsy/alltime There is actually a powerful buy and hold strategy here. Buy FRC, hold until a XBT/USD boom where one sells at say a 4000% profit gross in terms of XBT. After demurrage of say 10% for a little over a two year hold the profit in terms of XBT is only 3990%.  

Will it happen again?

Hmmm.
legendary
Activity: 2282
Merit: 1050
Monero Core Team
September 02, 2014, 02:36:47 AM
#6
Has anyone taken a look at the insane spike FRC/XBT had last year? http://www.cryptocoincharts.info/v2/pair/frc/btc/cryptsy/alltime There is actually a powerful buy and hold strategy here. Buy FRC, hold until a XBT/USD boom where one sells at say a 4000% profit gross in terms of XBT. After demurrage of say 10% for a little over a two year hold the profit in terms of XBT is only 3990%.  
hero member
Activity: 924
Merit: 1000
September 02, 2014, 01:48:45 AM
#5
Very Recent Additions to Freicoin Bootstrapping.

AskCoin adding Freicoin.
Cointopay payment gateway integrates opencart and Freicoin.

Games

Freicoin-Dice added accepts Freicoin.
Freicoin Mafia]http://freicoinmafia.com/game/]Freicoin Mafia added accepts Freicoin and Dogecoin.

A small group is working hard to help make the coin more useful. Here is hoping that those with some interest in Freicoin join us and help out.

More Exchanges for Freicoin Project is one such venture.
legendary
Activity: 896
Merit: 1000
Interesting point regarding the precious metals but you're right, the amount of metal in the safe doesn't decrease.  It's also an interesting example given the recent IRS guidance on Bitcoin being "property" rather than a currency.

It's unfortunate that so many people are using cryptocurrencies as a vehicle to make a lot of fiat gain rather than to use the cryptocurrency as a currency.  We're not going to change the system if Bitcoin, Litecoin, Freicoin, etc..  are thought of as just another way to get rich and/or hoard and save.
It is unfortunate because a lot of the stronger coins have greatly benefited the "first movers." But hoarding (i.e. saving) is not necessarily a bad thing, especially for a long-term "deflationary" system like Bitcoin. However, the vast disparity is another issue entirely.

I think we're going to continue to see crypto-currencies used as an investment/speculation vehicle (rather than as a currency with an in-built ledger/accounting system) because of the IRS ruling in the U.S. What needs to happen to provide stronger affect in changing that is to have an economically strong country legislate that crypto-currencies truly "currencies" rather than just vehicles. That would have a great impact in making crypto-currencies more of a "mainstream" thing.

Once that happens, there can be enough velocity of money to change to try other experiments on a more appreciable scale (such as Freicoin). But that opens a whole new can of worms (at least in terms of finance and law).
full member
Activity: 140
Merit: 100
Interesting point regarding the precious metals but you're right, the amount of metal in the safe doesn't decrease.  It's also an interesting example given the recent IRS guidance on Bitcoin being "property" rather than a currency.

It's unfortunate that so many people are using cryptocurrencies as a vehicle to make a lot of fiat gain rather than to use the cryptocurrency as a currency.  We're not going to change the system if Bitcoin, Litecoin, Freicoin, etc..  are thought of as just another way to get rich and/or hoard and save.
legendary
Activity: 896
Merit: 1000
Demurrage is actually fairly common in a different sense. One of the simplest analogies for demurrage is paying a constant fee to keep a store of precious metals safe. In this case, the cost of keeping the precious metals safe function as the demurrage. However, in this case the store of precious metals doesn't decrease, instead a different asset is used in payment.

When it comes to cryptocurrencies though, the function changes. Demurrage is instead used to promote the circulation of money. I think it is a fascinating idea, but the problem is finding enough parties that can continue to exchange on a "constant" enough basis. In my opinion, crypto-currencies still don't have enough widespread adoption to make this sort functionality work as it should. Demurrage with such a small base of disconnected people turns each unit of currency into a metaphorical hot potato. I could see things different with a larger and more connected user base, but that's not the case right now.
full member
Activity: 140
Merit: 100
Hey guys, I've been really interested in and reading a lot about Freicoin lately.  One of the things I think the various cryptocoin communities can do better is foster an environment where hoarding isn't beneficial - spending the coins is.  This coin has been around a while and think it's worth another look (or a first look if you've never seen it).  I'd love to read your thoughts about it.
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