So, if your coin is under priced to begin with, it can appreciate and gain value just like Bitcoin. I just don’t believe regulating the price will work.

I’m not a Keynsian, there’s an FAQ about that in the paper :). I think the Mises guys have it pretty much right. I’m not trying to make a “fairer” bitcoin. What I am proposing is a coin that I think would be more successful, is all.

I think the Austrians have a couple of key reasons not to mess with the money supply:
1. predictability. If the money supply is constantly mucked with, who knows how to price anything?
2. anti-theft. Governments regularly inflate the money supply to steal from the people. This is wrong and damages the economy and lives in obvious ways.

Anti-theft is achieved in ways outlined in Satoshi’s paper.

Predictability of the money supply is achieved by the fact that the code is open and anyone can see how it works. We could, however, have a more stable value and still have predictability, if we floated the money supply amount and let the market determine how large of a money supply we have. This does not go against Austrian economics.

Before you protest, please consider carefully what the value of a “freecoin” would be based on. It would be essentially based on scarcity just like bitcoin, but with downward pricing pressure to the point of some small margin over the cost of energy. Perhaps it would be better called “energycoin” :). In this sense, it is a straightforward commodity-backed currency, where the commodity is energy. In this light, Austrian economists may prefer this currency over something more “fiat”-based like bitcoin.

Owen

P.S. Ripper, I’m hoping to revise the paper soon and republish, addressing your comments.

http://mises.org/resources.aspx?Id=357532fa-a772-4a1d-a5a2-5d8ced3d05ae

There is no such thing as a ‘hoarding problem’.

The problem with people who believe in these false economic models, is many faceted. Firstly, they do not even know what the name of the ideas they are following is, such is their economic illiteracy.

Second, they are suffering from the idea that money has to be ‘fair’; it does not. Money is a tool, just like any other tool. Hammers are not ‘fair’ or ‘unfair’. They bang nails in.

Money is a tool that is used for exchange. If you want it, you have to exchange something for it that you want less than you want the money. Similarly, the person who has the money, has to want what you have to exchange more than they want the money.

Basic ideas surrounding what money is, where it comes from and what the best money is are not taught in schools. What is taught however, are fallacies and nonsense masquerading as education, which is why you get otherwise intelligent people calling for Bitcoin to be made fair, and claiming that it suffers from some other imaginary flaw.