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> That is, what is in it for me to use freicoin? Perhaps the advantages of bitcoin but without the instability. If bitcoin continues to go through boom and bu
by wcoenen 14y ago
> That is, what is in it for me to use freicoin?
Perhaps the advantages of bitcoin but without the instability.
If bitcoin continues to go through boom and bust cycles that change its value by orders of magnitude, then ironically an alternative with demurrage might prove to be a better store of value. You might lose some of your savings, but at least it'll be predictable.
- alexjeffrey 14y agothat's not a very compelling argument given traditional-currency savings accounts will at least grant you very small interest rates.
- wcoenen 14y agoSure, but you get the other advantages of bitcoin. I interpreted the question as coming from a bitcoin user: "why use bitcoin+demurrage if I can just use bitcoin?" If you have already decided that a savings account with interest is an even better way to store value, then my argument indeed doesn't work.
- khuey 14y agoFiat currency savings accounts almost universally have negative rates of real return. (The small amount of nominal interest is cancelled out by a couple percent per year of inflation).