Post
Topic
Board Altcoin Discussion
Re: Proposal from a macroeconomist for an optimal crypto-currency
by
pmconrad
on 17/12/2013, 20:48:04 UTC
Hi,

very interesting.  You may want to have a look at emunie ( http://forum.emunie.com/ ), which has a built-in mechanism to stabilize the value of the currency.

And I think this assumption is wrong:

Even monitoring the relevant inflation rate for a crypto-currency would be difficult, because at present much of their use (if I understand correctly) is in the purchasing of goods where one or both parties don't want it made public that the transaction took place (e.g. because the good is illegal), making it very hard to build a price index.

IMO the current problem is that at this time the value of coins is mostly due to speculation. Very few currencies have a real world use, like buying goods. And even for those that have it, the merchants have to adjust their prices due to the volatility created by speculators.