[yxhuvud]

If you bind the amount of xcoins to demand, what is the difference to normal currency? The vast majority of the money that exist right now is created on demand by banks, when there exist people that want to loan and have the ability to pay back the loan.

I wouldn't mind a distributed currency with this property, but you really should be aware that this is the basic operation of the banking system.

[rthomas6]

A slight but significant difference would be that the currency would not create credit or debt when it was created. People will either mine the currency, which is trading a service for the currency, or buy it on an exchange, which is trading one store of value for another. So the economy would be value-based instead of debt-based.

With a commodity like gold, when its value increases, people mine more of it because people want more. This increased supply reduces its value.

To me, the ideal currency is one in which you can get paid for performing a service, and 20 years later, the payment is still worth exactly the cost of that service. A long-term store of value, a way of remembering the value of everything.