Demurrage (currency) Demurrage is the cost associated with owning or holding currency over a given period. It is sometimes referred to as a carrying cost of money. For commodity money such as gold, demurrage is the cost of storing and securing the gold. For paper currency, it takes the form of a periodic tax, such as a stamp tax, on currency holdings. Demurrage is sometimes cited as economically advantageous, usually in the context of complementary currency systems. While demurrage is a natural feature of private commodity money, it has at various times been deliberately incorporated into currency systems as a disincentive against the hoarding of money, as well as to achieve other perceived benefits. Gresham's law that "bad money drives out good" suggests that demurrage fees would mean that a currency would suffer more rapid circulation than competing forms of currency. One Schilling note with demurrage stamps from Wörgl The Islamic system of Zakat is a form of demurrage.
THE BITCOIN BUBBLE If you haven't already heard about bitcoin, the first popular cypto-currency, you soon will. The idea for the currency is simple. It's a software system that makes it possible to manufacture and trade (P2P), in a public and decentralized way, a limited digital resource. So why the interest in bitcoin? Simple. As a transactional currency that operates outside of traditional systems, it's actually a pretty good medium of exchange (particularly if those transactions are small and quick). As a store of value or an asset it's shady. So, for those of you with the stomach to take bets with eastern european mobsters and US financial boiler rooms or if your willing to bet on the fickleness of viral adoption, you might be interested in taking a look at bitcoin as an asset. As far as I know this could become the first P2P bubble. NOTE: Here's some more traditional economic analysis of bitcoin from Adam Cohen.
Crédits Facebook, WoW gold ou pieces d’or de My Pet World En ce moment sur Internet se déroule une expérience d’économie monétaire inédite: indépendant de toute Banque centrale, muni de son propre système de paiement (se passant en particulier totalement du système bancaire), le Bitcoin est une monnaie virtuelle qui séduit de plus en plus d’adeptes et surtout passionne de plus en plus les économistes. Money is memory Pour faire très simple, le Bitcoin est une vraie monnaie, qui permet d’acheter toutes sortes de biens et de services, avec un taux de change de marché (surtout échangeable contre des dollars), mais sans pièces, ni billets, ni banques. C’est aussi et surtout une monnaie de geek qui a su se parer de tous les atours qui leur plaisent: créée en 2009 par une figure fantasmatique restant dans l’anonymat, avec un pseudonyme japonais (clairement encore le pays où on n’arrête pas le progrès), les premiers pas du Bitcoin cherchent clairement à s’ancrer dans la mouvance anonymous. Bitcoin, et les autres Economie expérimentale
Bitcoin for Bitcoiners Ripple is a payment system for any currency with support for cross-currency transactions. You can use Ripple to send and receive money in dollars, euros, yen or Bitcoin without having to do extra work for foreign exchange transactions. Now, you can spend and receive your Bitcoin as easily as any fiat currency. Bitcoiners in particular might appreciate Ripple because: Built-in currency exchange Our goal is to integrate virtual currencies with all the payment systems of the world. Decentralized network Ripple is a distributed network – meaning it does not rely upon one company to maintain and protect the database. Understanding the role of the ripple currency (XRP) in the Ripple network Ripple is a decentralized transaction network that also contains a virtual currency. Additionally, Ripple has a native currency called “ripples” or XRP that already exists within the Ripple network. Learn more about how Ripple works, read “How Ripple Works” or the wiki. Learn about gateways and pathways
Did A Reporter Just Solve A Bitcoin Mystery? : Planet Money hide caption One bitcoin will get you this nerd merit badge. eagleapex's posterous/Flickr In 2009, a programmer who called himself "Satoshi Nakamoto" created bitcoin. The journalist Joshua Davis tries to track down Satoshi in an article (subscription req'd) in this week's New Yorker. Whoever created bitcoin, it's clear that he (or she, or they) is/are a very clever coder with a deep understanding of cryptography. An expert tells the New Yorker writer that someone with Satoshi's skills would probably be at Crypto2011, the most important cryptography conference. So he narrows the field to people from the UK at Crypto2011. After I read the article this morning, I called Gavin Andresen, a programmer who has done a lot of work on bitcoin, and who we talked to at length when we did a bitcoin story earlier this year. I asked Gavin if Michael Clear is Satoshi. "I have no idea," Gavin told me. Clear was named the top computer-science undergrad at Trinity College in Dublin in 2008.
Comparaison monnaies virtuelles Physical Bitcoins by Casascius Bitcoin, Linden Dollars et cie : à quoi servent les monnaies virtuelles Atlantico : Qu'est-ce qu'une monnaie virtuelle ? A quoi sert-elle ? Marc Tirel : C’est une monnaie qui est complètement dématérialisée, qui fait l’objet d’échange et de transactions sur Internet. Il faut faire la différence entre monnaie régalienne, dématérialisée ou non, et monnaie virtuelle. Les monnaies que l’on connait tous sont en partie dématérialisées alors que les monnaies virtuelles sont de naissance dématérialisées. Ces monnaies virtuelles sont utilisées dans les jeux en ligne, Facebook, Amazon… Avec le Bitcoin on a franchi un pas important. Le Bitcoin est une monnaie très particulière car la création monétaire n’émane pas d’une source centrale, elle émane des ordinateurs qui sont connectés au réseau. Si on fait le pari que la monnaie virtuelle va encore augmenter, c'est un pari à prendre. Quelle est la réelle valeur d'une monnaie virtuelle ? Aujourd'hui c'est encore très peu chiffrable. Quelles sont les règles qui régissent la monnaie virtuelle ?
Why most people refuse to accept and understand Bitcoin. - Bitcoin Community The answer is simple. It is because most modern people are prisoners of The Cave. ( ) How is this related to biticoin (and gold standard) ? The Richter Report explains here Quote In terms of their understanding of the nature of money, most people in our society are exactly like the prisoners described by Plato in his "Allegory of the Cave." Think about what happens when one of the prisoners breaks free of his chains and is gradually able to see and understand the outside world of real, honest money. Think also about the reaction of the prisoners when confronted by the person who has seen the outside world of real, honest money. 1) "Gold and Economic Freedom," Alan Greenspan (1966). ( "Gold and Economic Freedom," Alan Greenspan (1966).) Again, just like Alan Greenspan said in 1966 (probably way before he has chosen (maybe) to join cave jailers profession):
Freicoin - peer-to-peer demurrage currency Will Bitcoins join the ranks of US dollars, Euros and other currencies? | Patexia I first heard about Bitcoins seven months ago on the radio. I understood them to be some sort of alternative, online “currency” but it sounded a little too esoteric to me at the time. A few months later I heard about them again in a story covering an underground website called Silk Road that sold drugs, including illicit drugs, and people used Bitcoins to pay for these drugs. Bitcoins were real and being used to buy real products. In a day and age when people are starting to question the true interests of the government and corporations and banks, especially in light of the Occupy protests, it’s no wonder that Bitcoins were created. Bitcoins were first introduced in a paper in late 2008 written by a hacker going under the pseudonym Satoshi Nakamoto. There are several good reasons for “digital” coins. There will never be more than 21 million Bitcoins due to the design of the network and they are almost infinitely divisible although this may not be a plus if the value is too low.
Bitcoin : une monnaie virtuelle pas comme les autres : Questions/réponses autour du bitcoin Student startup storms cyberspace A student start-up launched in July gives consumers easy access to new digital currency that is quickly spreading across cyberspace. Thomas McCabe ’12 founded Get-Bitcoin.com this summer after struggling to find websites that sell Bitcoins, a digital currency created in 2009 that people can use to anonymously trade and buy products from select companies. McCabe said traffic on the website is increasing daily — the site earned over $8,500 in revenue on Monday alone — but the company could potentially face restrictions from the U.S. government. Since Bitcoin trading is anonymous, people often use them to buy or sell illegal drugs and services, and this illegal activity has prompted U.S. “It’s like virtual gold,” McCabe said of Bitcoins. “Payments are about to change dramatically,” Feigelson said of the trend to use online currency. Still, in just the past two weeks, McCabe said, the number of orders for Bitcoins has quadrupled.