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.
Bitmessage Bitcoins: Why They're More Than a Bubble The volatile rise-and-fall of Bitcoin has prompted lots of stories explaining why the online virtual currency is a classic bubble. Many compare it to tulip mania in 17th century Holland, where prices of rare tulip bulbs soared to absurd heights and then crashed, ruining the speculative investors who had bought them. But the Bitcoin phenomenon is more than a bubble. It says something important about the current and future state of the global economy. The scale of the recent boom-and-bust has been staggering indeed. Such monumental appreciation and volatility are clearly the result of speculation — people buying the online currency just because they think its value will rise, not because they want to use it to purchase goods and services. (MORE: No Money, No Problems: Canada Considers Completely Digital Currency) The technicalities of the Bitcoin system are complex, but to make this online currency more successful than previous versions, the designers overcame two key challenges.
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 How to Buy Bitcoins Anonymously in the US Instantly Big Brother is Watching You If CISPA or other privacy-busting legislations pass, every detail of our personal lives will be at risk. Although many of our foundations are rooted in anonymity, everything we see, do and buy may soon be exposed. However, technology always evolves, and anonymity is no exception. As many already know, Bitcoin is a decentralized, digital currency that can be used like cash. An anonymous member of the Bitcoin community has contributed these wonderful instructions detailing 6 simple steps to buying Bitcoins with near anonymity in the US. Step 1. Step 2. Step 3. Step 4. Choose the Cash deposit to Bitcoin to email option. Step 5. Follow the instructions on Bitinstant to make your cash deposit, and have your Bitcoins sent to your new Tormail account. No ID is needed. Step 6. Receive your Bitcoins via email. And voila. Here are a few places you can spend Bitcoins: CoinDL - The iTunes of the Bitcoin economy About Andrew
Feds seize money from Dwolla account belonging to top Bitcoin exchange Mt. Gox The Department of Homeland Security has apparently shut down a key mobile payments account associated with Mt. Gox, the largest Bitcoin exchange. Chris Coyne, the co-founder of online dating service OKCupid, tweeted out an e-mail he received from Dwolla this afternoon. The e-mail states that neither Coyne, nor presumably any other Dwolla user, will be able to transfer funds to Mt. Dwolla confirmed the change to the New York Observer , which first reported the story. "The Department of Homeland Security and US District Court for the District of Maryland issued a ‘Seizure Warrant’ for the funds associated with Mutum Sigillum’s Dwolla account (a.k.a. It isn't yet clear why this seizure happened, and Dwolla isn't saying anything beyond confirming the court order. Using a payment service like Dwolla is one of the easiest ways for US residents to buy Bitcoins.
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.
How the Bitcoin protocol actually works Many thousands of articles have been written purporting to explain Bitcoin, the online, peer-to-peer currency. Most of those articles give a hand-wavy account of the underlying cryptographic protocol, omitting many details. Even those articles which delve deeper often gloss over crucial points. My aim in this post is to explain the major ideas behind the Bitcoin protocol in a clear, easily comprehensible way. Understanding the protocol in this detailed way is hard work. I’ll describe Bitcoin scripting and concepts such as smart contracts in future posts. It may seem surprising that Bitcoin’s basis is cryptography. My strategy in the post is to build Bitcoin up in stages. This strategy is slower than if I explained the entire Bitcoin protocol in one shot. Finally, I should mention that I’m a relative newcomer to Bitcoin. First steps: a signed letter of intent So how can we design a digital currency? On the face of it, a digital currency sounds impossible. Proof-of-work “Hello, world!” to .
Amazon’s new “virtual currency” of dubious benefit to customers Straight from Amazon's press room comes the news that Amazon has officially launched Amazon Coins, which the company excitingly claims are "a great way for customers to save money when they buy apps, games and in-app items" for Kindle Fire users. To help everyone start using Amazon Coins, Amazon has deposited 500 of them into the accounts of all existing and new Kindle Fire users in the US. Amazon Coins were initially announced back in February, with the company saying they're primarily designed to benefit developers and consumers. "For customers, Amazon Coins is an easy way to purchase apps and in-app items on Kindle Fire, and for developers it’s another opportunity to drive traffic, downloads and increased monetization," proclaims this morning's press release. The biggest problem is the inevitable misalignment between "coins" purchased and "coins" used. This is a problem with Microsoft Points, or indeed any points system. From Amazon's perspective this is fabulous.
Comparaison monnaies virtuelles Physical Bitcoins by Casascius