The OP's article discusses Freicoin and unsurprisingly disagrees with the economic theories of Gesell as we would expect from someone on the Mises Circle as Gesell is basically heretical to the Austrian school of economics. But the author to his credit dose not call Freicoin a scam or accusing it's supporters of being disingenuous, he simply feels our economic theory is wrong which still puts us on a higher level of respect then other alts in his eyes.
I would argue though that the author proves our own case when he attempts to make his. When he says
This is not the place to refute the economic theory behind Freicoin, but essentially it is based on the idea that the interest rate is a purely monetary phenomenon rather than a result of time preference.
He has actually struck DIRECTLY at the key disagreement between Gesell and the Austrian school, Gesell says interest is a monetary phenomenon resulting from liquidity, Austrians say it is a result of time preference. But he then goes on to say
Thus, by design, Freicoin discourages hoarding and encourages spending. It is touted as a currency for the working class rather than the wealthy because it supposedly can’t be used for making loans. Actually, however, if Freicoin were used for real, loans would simply be given at interest rates that are higher by 5%.
Here the author I think makes the rather simple error here of saying higher by 5% when it's quite obvious the rate is lowered by 5% (conversely the PPC coins ability to grow increases interest by the rate is grows at). But this is really inconsequential if the rate is up or down, the point is that he admits that interest rates will be altered by the nature of money. This is nothing less then the admission that interest is a monetary phenomenon as it is subject to change when the durability of money is changed. Jow can interest arise from a universal human time preference but be dependent on the durability of money, a characteristic of the money itself?
Lastly the author states
Now, if something is created with the express intention of providing an incentive to get rid of it, then it stands to reason that they will all the more not want to buy it in the first place. Thus, Freicoin is actually made to discourage investment in itself, which is the very thing that gives a currency value in the first place.
Freicoin is an idea whose time will never come. Since it rebukes buyers, it resists ever having value. Freicoin is thus not so much a scam but more an abortion. Its ideals are so refined that they eschew the merest chance of affecting the real world. Perhaps it could be taken as some sort of absurdist parody, which would be brilliant. I hope that is true because otherwise it is just too sad.
Their is some truth here, Freicoin discourages the formation of speculative bubbles which have been the driving force in BTC. But speculation is not the only thing that gives coins value, the earliest days of BTC were built on ideological interest and commitment. Their is also the valuation that comes from the active circulation of a finite supply via the classic MV = PQ equation, in our opinion this can provide a valuation without speculation. Lastly we have a charitable distribution plan for the bulk of the initial coin base which will bypass the need for most people to buy coins as we feel this is unnecessary and a huge contributor to speculation.
