Quote from: silzero on April 13, 2013, 02:46:54 PM

Do you like gift cards that have a monthly fee? I try to avoid them.

They depreciate at the rate of inflation either way.

Quote

Second, if someone wants to hoard, its their freedom to do so.

And it would still be their freedom to do so. But this solution incentivizes spending, which will be good for growing the BTC economy.

Quote

I'd be interested to post if you describe why these things are fundamentally bad.

No problem. The things I listed, in order, and an explanation for why each needs to be addressed:

Solve the problem of lost coins / lost keys:
Can't really argue that this is a problem. Coins are lost forever in the system never to be found, which means the total coins in circulation will never really be 21 million, and will always be decreasing. On a long enough time scale, they will eventually all disappear.

Prevent hoarding of coins / make it unprofitable in the long run to hoard them:
The economy only grows when money is flowing and changing hands.

Encourage people to spend their coins as a currency:
Bitcoin was intended to be a currency but people are treating it as a collectible because there is no incentive to spend. Merchants will be much more likely to accept Bitcoin as payment if they know people will actually use it as payment. Mass adoption thus becomes more likely.

Prevent over-speculation leading to volatility:
Last 3 days, enough said. The market needs to be stabilized for the public to gain confidence in it.

Create greater incentives for miners and give miners a reason to mine past 2140:
Under the current system, why should anyone mine past 2140? It's also unprofitable to mine, whereas this would make mining more appealing.

Eliminate transaction fees completely:
Transaction fees discourage spending and encourage hoarding.

Solve the problem of deflation, while still preventing inflation at the same time[/quote]
Deflationary currencies don't work for precisely the reasons I already pointed out. People don't spend them. Inflation also has adverse effects, such as when prices go up at a disproportionate pace to wages. It's not easy to solve both these things at once; usually one must be sacrificed for the other.