I'm quoting this post because I'm worried you missed it the first time.
You wrote your post as if you were trying to make a rhetorical point.
Ah, my mistake then; it was a sincere question. I've been putting a lot of thought lately into how to improve the cryptocurrency idea.
The problem with proof-of-work is that in order to make the ledger impeachable, people need to throw real-world value into a hole.
It turns out this is no longer true. Keeping an impeachable ledger is pretty trivial. Lots of industries do it with much less computing power. Preserving the illusion that all that computing power is important, is the primary use of that computer power now.
Then, an ledger that doesn't require trusting a centralized bookkeeper.
So then... what? If this is a troubling result of the network rules, what rules would have worked better? How do you distribute newly created BTC in a "fair" way, when an anonymous system means that Sybil shenanigans are trivial? How do you incentivize mining, except via block rewards?
I'm sincerely interested in hearing your ideas.
Most of the "steady value" models involve generating and destroying coins on an as needed basis. None have been implemented yet (as far as I know) because there isn't a ground swell of interest in creating a currency in which the early adopters don't get rich.
However, for insights you might consider learning about Local Exchange Trading Systems.
http://en.wikipedia.org/wiki/Local_exchange_trading_systemSuppose Alice grows Apples, Bob grows Beans, and Charlie makes Cheese. But none of them have any money.
Now if Bob wants an Apple, but Alice doesn't want Beans, then in a LETS system they agree on a price $1 and Alice gives Bob an Apple. The transaction is accounted for using double entry book keeping. Alice + $1, Bob - $1. With LETS it is OK to have a negative balance (within limits)
Now Alice wants $1 worth of Cheese so Charlie gives it to her. Balances now are:
Alice = 0
Charley = +1
Bob = -1
Finally Charlie wants $1 from Bob so he gives them to him. That puts all balances back at zero again.
No currency exists at the moment, because no currency is needed.
When currency is needed again, it is simply created. A flexible currency supply is indeed a magical thing!
, in more than one way.
Interesting.