Now that the power of cryptos is clear, they should be considered as a way to test different monetary systems. Of course, we are already testing new ones introducing concepts like rewarding technical skill and processing power. Perhaps dedicated supporters of traditional and innovative economic theories can create altcoins that support what they believe. Bill Still just posted a youtube video about someone discussing a gold-backed one. I personally am interested in one that uses the principles of binary economics, empowering all who voluntarily participate with productive credit. I posted about it on the ethereum forum, I guess I will put that info in another post here. And even though it does not totally represent their theories, the Zeitgeist people could make a coin. Perhaps they could get everyone in their community to pool all of their resources and get a central computer to decide who gets what, and how many coins. Keynesians could create their coins via fractional lending. Georgists could tie their coin to land, etc. Again, I know there are not always direct correlations between the theories and what can be done with the coins, but it can get most closer to proving their points. Each could have a foundation and give all the wonks a new reason to argue. This way the market can decide the best system. There have been many great minds dedicated to this issue for centuries, and it may greatly benefit humanity to combine their wisdom with the frictionless global exchange, security, non-trust, etc. features of crypto-currency.

I am new to the scene but lost about $150 to Gox. My gut feeling is the "leaked" doc is legit, and the numbers are believable. The timing of the site going down and the fact it has been so long since the problem surfaced with no disclosure of details the whole time makes me think there are huge losses. If the parties who exploited the malleability issue found it was possible on a small scale, then they would have done a large amount in a short period of time. Then they continued it until discovered, which could have been a while considering what we know. Then the coins in cold storage would be almost the only BTC left to try to keep going with. Maybe even while the theft continued. I doubt there is a buyer. Gox is trying to get all of Bitcoin to fix Gox and I don't see that happening. I had just been thinking if trading has continued this long, they are going to make it and I was about to buy more Gox coins. Lucky this happened first. This actually may be best because it will likely lead to bankruptcy and Bitcoin price will recover more easily, and by the time the court helps divide what remains BTC price may increase such that Gox account holders net 50% or more of the value they had before the "crisis", even after sharing the losses of the theft due to poor security. To me that looks like best case.

I agree with the gist of what you are saying, but there is a way to have a voluntary system that empowers all of humanity who wish to participate with no possibility of inflation.

Thank you TCraver for that explanation. I can see how that would have some merit. I lean toward having no intentional increase or decrease in value, though. But if that scenario were to materialize and every person created an equal share of coins, this could be another place where the smartphone ap that uses biometrics would work identifying separate individual participants.

I would like to understand "decay rate" better. I read that some are in favor of it because it would discourage hoarding, and therefore reduce wealth disparity.

I would also like to debate anyone who thinks there is a better money system than my previous proposal about a Capital Homesteading system using digital currencies. Loaning money into existence for feasible productive projects allows for unlimited growth without inflation, and I believe without decay rate also. I am against interest, especially compounding interest. But if the productive credit is allotted equally to every human, and they invest in dividend-paying companies, everyone will receive dividend income to replace technological unemployment and a capital growth nest egg for retirement. This creates free(er) markets, eliminates redistribution, taxation, and of course reduces wealth disparity. And if the decisions about what entities get new capital come from the largest possible number of people, companies will have to treat employees fairly and respect the environment. Otherwise people will not let them use their productive credit allotment.

This community may be creating the new money system of the world. I know some consider this to be a great opportunity to fix many of humanity's problems. I do, and I hope you will.

Hi forgive my newness, I signed up just for this conversation. I have an idea for modeling a block chain solution after a guaranteed income-style proposal that previously involved traditional banking. I am a founding member of the Coalition for Capital Homesteading capitalhomestead.org which at this time supports a plan that proponents of minimum incomes seem to like. I have been studying monetary reform for years and I along the way I discovered something called Binary Economics which I believe has the best principles for supporting all of humanity, expanding freedom and allowing maximum growth without inflation. It is not perfect but I feel strongly that something like it really needs to be tried, even of only in one state or region.

The main concept is that loaning money into existence is not necessarily a bad thing. It is just being done the wrong way everywhere. Fractional bank money is backed by government debt and used too often for usurious consumer debt and margin speculation. And of course it is done in a way to benefit the banks, their favored customers, and their lapdog politicians that enable them. You know that part. The concept that I have started focusing on is how productive credit is good, and how it can be really good if it empowers all citizens. The proposed Capital Homestead Act would allow every child, woman and man to open a retirement account and receive credit of several thousand per year (actually a formula based on new growth in GDP divided by number of citizens) to invest in the dividend-paying corp of their choice. The dividends would be spendable each year before retirement. There are many in-depth explanations at cesj.org and some (admittedly not-slick) videos on Youtube. I even gave a speech at the Fed in 2012 and at the Lincoln Memorial last year which you may find interesting; only about ten minutes each. Search my name and Capital Homesteading on Youtube.

When I heard Daniel Larimer of BitShares on LTB I started thinking that perhaps the blockchain concept offers hope for a Capital Homesteading-type plan to exist in the coming "distributed autonomy" world. I also had some ideas along the lines of what you were discussing above about making sure each individual person participates and that others can't fraudulently get multiple identities to abuse the network. I'm thinking smartphone app with biometric combo such as fingerprint, eye scan and voice recognition. Hey, they say a decent percentage of people in Africa are getting phones. Easier than PCs when it comes to meeting the objective of getting every human online. My ideas aren't bulletproof but I think that the bitcoin/blockchain community could work on this problem if something like what we are discussing emerges.

Distributed autonomy and modeling systems based on consensus of what is just for humanity is looking like the answer to so much. I am trying to convince some of the older economists in my movement to consider the possibilities. I and my friends often quote Bucky Fuller "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” I am starting to think this forum can do just that. I hope that all who are in any position to influence what kind of money system the world has will please consider economic justice for all. We the tech-enabled should not want to become the plutocrats of tomorrow. And keep in mind that whatever business you want to be in, it will be easier for it to succeed if there are plenty of customers with money out there.

Thanks for reading and for any constructive conversation. Be patient for replies I don't get online much due to work.