Quote from: BubbleBoy on April 19, 2013, 10:12:16 PM

The 999 part is my addition and is what Decrits attempts, if I understand it correctly. But you need to be exceptionally careful who you give the new coins to. If random addresses then you have a guaranteed interest for simply holding money. People stop spending and start watch their accounts rise, deflation and instability ensues: the more you try to fight it by issuing new coins the more profitable it becomes to hold currency until the whole bubble pops violently as people crash the exchange market looking to "cash in". Familiar ?

Solution: you award people transacting a much larger (in terms of award to volume) percentage of the pot. It's simple to fix this, and I already have.

Quote

So it's either inflationary and money, or it's Bitcoin - a speculative unstable commodity for the internet geek and closet anarchist.

"Inflation" isn't such a bad word when the new money goes to the people rather than the banks or government. It should not typically cause price inflation at all with the proper precautions in place (like in decrits).

Quote

It's important for this stability thread to note that even 0% inflation (complete stability) is a counter productive goal. Sometimes a real 0% return is above what market has to offer, for example during a recession. If you try to guarantee a 0% risk free return, you kill trade because people prefer to hold money and wait for better times.

I must point out that a big part of recession is a slowing of the velocity of money. Deflation should *almost always* happen during a recession, but it does not due to price stickiness. Look at gasoline in 2008. Because of the simple fact that gasoline is priced sometimes even hourly, it does not suffer from price stickiness, and it dropped in half. If prices become too high for the average person to afford (respective to salaries and such), minting will become lucrative. And money will be spread into the economy. Yes, this would likely cause slight long-term inflation, but this is exactly what you are asking for. The wealthy are being punished for not moving money and killing the economy; and this new money will spread into the economy and avoid unnecessary suffering. It might inspire the wealthy to stop the shenanigans in the first place after a few economic power grabs fail.