[kiba]

One does not simply invent a currency to solve a percevied problem in our economic system. A currency must also provide compelling economic reasons to actors for adoption. That is, what is in it for me to use freicoin?

I don't see any reason to give money, buy, or sell, or do anything with freicoin. To me, the fact that freicoin decays when not used is a bug, not feature.

[lolcraft]

Completely agree. FreiCoin: when programmers do not understand what Nash Equilibrium means. Nor the Tragedy of the Commons.

They made a great attempt, but sometimes one's best try is just not enough.

[maaku]

> FreiCoin: when programmers do not understand what Nash Equilibrium means. Nor the Tragedy of the Commons.

Care to explain?

[nodata]

Encouraging currency to be used/passed around more is not a bug for me.

Might interest you: http://www.lietaer.com/2010/03/the-worgl-experiment/

[aethertap]

I can't speak for others, but in my case, if I came to possess some of this currency I would immediately seek a way to convert it into something that would not decay as I kept it.

I think that saving money for both unexpected problems and future investments is an important part of social responsibility, and I would not adopt a currency that was deliberately designed to make saving difficult unless it was forced on me. Even then, I'd probably try to turn it into some kind of commodity that I could sell again later in order to dodge the losses.

There are a few assertions on the main page that I find interesting, in particular the one about money value vs goods value being "the underlying cause of the boom/bust cycle." I don't have time to read the linked book about it, is there a quick version of the explanation?

[khuey]

Yes, the point is to get you to convert the currency into something that doesn't decay. That keeps the money supply flowing and encourages you to invest in productive assets, both of which are good for society. A deflationary currency encourages you to stuff all your coins under your mattress.

[aethertap]

How does it improve the situation if I'm just buying something else to stuff under my mattress (e.g. silver)? I guess my issue is that it seems like even with a system like this implemented at a national scale, over the long run you'd end up with people rushing to convert the currency into "real" money, that being whatever commodity people land on as being most easily traded/stored/etc. At that point it seems like the commodity becomes the currency.

[maaku]

Because the assets you're holding under your mattress aren't affecting macroeconomic factors derived from the supply and demand of the currency of trade. More simply, you are conflating money as store-of-value and money as medium-of-exchange.

[kiba]

Encouraging currency to be used/passed around more is not a bug for me.

I never doubt your goal, just the ability of your currency to achieve what you are trying to get.

Might interest you: http://www.lietaer.com/2010/03/the-worgl-experiment/

I have no reason to doubt the story as told there(other than my theoretical complaint), but I am not a historian or economist.

[nodata]

but I am not a[n] .. economist

Economists have not proven themselves credible.

[cjg]

It makes it harder to accumulate wealth. This may or may not be a good thing depending on your point of view.

Taken to an extreme, it's move back to hunter-gather societies when you had to work every day - no stored capital.

[wcoenen]

> That is, what is in it for me to use freicoin?

Perhaps the advantages of bitcoin but without the instability.

If bitcoin continues to go through boom and bust cycles that change its value by orders of magnitude, then ironically an alternative with demurrage might prove to be a better store of value. You might lose some of your savings, but at least it'll be predictable.

[alexjeffrey]

that's not a very compelling argument given traditional-currency savings accounts will at least grant you very small interest rates.

[khuey]

Fiat currency savings accounts almost universally have negative rates of real return. (The small amount of nominal interest is cancelled out by a couple percent per year of inflation).

[wcoenen]

Sure, but you get the other advantages of bitcoin. I interpreted the question as coming from a bitcoin user: "why use bitcoin+demurrage if I can just use bitcoin?"

If you have already decided that a savings account with interest is an even better way to store value, then my argument indeed doesn't work.

[tptacek]

Irony aneurysm!

[chrisvineup]

Not globally, but to solve local economic problems people are making real headway. Local currencies that can only be spent with local businesses are solving a problem right?

[maaku]

Why would you say no to accepting freicoins, if you could immediately turn around and convert that into whatever currency you do want to hold?