RE: Part 2 : THE DEMURRAGE BASED CRYPTO CURRENCY SYSTEM FOR STEEMIT

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Part 2 : THE DEMURRAGE BASED CRYPTO CURRENCY SYSTEM FOR STEEMIT

in money •  8 years ago 

This is an interesting concept. I remember that one of the early alts had a demurrage factor incorporated into it for the very reasons you state. Can't remember which one it was though.
I think there is a lot of resistance to these kinds of economic ideas though. It is like suggesting a reduction in lottery jackpots. Even though most people will never be affected by it "hoarding" money and wealth is incredibly seductive. Most people want it and even having the dream has power. Any change to it threatens that dream.
That is why I suspect it has never caught on in modern economies.

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The modern economics or the FED do not want this, they want to control the money, and us the slaves. Money is meant as a means of exchange and not as a means of value, so by hoarding money, it hurts all the rest by becoming less volume and velocity needs to go even further up.