Post
Topic
Board Archival
Re: delete
by
bansal
on 31/08/2011, 18:29:31 UTC

Creating clones of a currency doesn't make the original non-deflationary as they are not part of the same network.

The effect of demurrage on people's purchasing power is basically the same as inflation so I don't see why they wouldn't be able to accept it. Currencies with demurrage have already been successfully introduced by the way.

People can start using the other network, and once supply of the original currency gets low there will be powerful incentive to do so.  We are starting to see that already to a certain extent with Bitcoin.  Nobody has studied the long term effects of demurrage.  Savings and loaning out savings are an important part of economic growth, demurrage provides a disincentive for this.  Also again the problem of the average person understanding this, and then wanting to pay just to hold on to their money.  I wish you guys luck, but I just don't see it happening.