The problem with freicoin is that the demurrage discourages investment in it. Being that you can't really spend them anywhere right now, you're just buying a depreciating asset.
I don't see it taking off because of that.
It's wierd, I think that's a genuine concern, speculators might get turned away by demurrage, and speculation is such a huge factor for all cryptos it seems.
But I remember thinking the exact same thing when the Frei was first started, I mined some anyway just to diversify. But I really thought who is going to invest in this? It's the only coin where you lose 5% per year just by it's nature. I really wanted it to do well but I just couldn't see it happening.
For anybody unfamiliar with demurrage it means that the currency naturally degrades over time (by ~5% per year in Frei's case), the goal being to have a rate small enough that the price is stable and people can use it as a currency, but large enough that rich people who tend to hoard wealth have an incentive not to (because it will depreciate in their hands). This pushes everybody really to put their money to work in whatever way they can, be it investments, loaning it out, or purchasing goods and services. And the idea is that all this money that is actually going to work, as opposed to sitting in some persons bank account makes for a much healthier economy and society. It's actually a wonderful idea in my opinion, but the part about money degrading takes a little getting used to
And then look where things are today, it's ranked 14 on coinmarketcap and the only way I can explain this is that Frei is actually a really great coin, not just something superficial, it has a whole other level of idealism on top of the crypto one. Relative to the rate that all cryptos have been increasing in value, Frei's demurrage has ended up being insignificant.
I didn't really intend this to get so long, but you've caused me to think about why I like Frei so much, and now that I think about it Frei is only 2% of my crypto holdings but it's the only crypto I would be sad to see die. I don't care about btc, ltc, qrk other than hopefully making a little money, some cryptos will dominate and I don't care who they are.
But Frei I really want to see do well! And so I guess maybe other people feel the same way and that is why Frei is surviving (and thriving) despite the demurrage.
