Stephen DeMeulenaere

Alternative, Community, Complementary, Bitcoin, Cryptographic, Digital Currencies & Payment Systems specialist

Stephen DeMeulenaere - Alternative, Community, Complementary, Bitcoin, Cryptographic, Digital Currencies & Payment Systems specialist

Possibly the first Stable Pegged Cryptocurrency – NuBits

Link to article below:

https://www.cryptocoinsnews.com/nubits-seeks-to-end-cryptocurrency-volatility-with-usd-peg/

Link to White Paper

https://nubits.com/about/white-paper

On September 23, Peershares launched NuBits, a digital currency developer Jordan Lee claims will remove the volatility associated with cryptocurrency prices. NuBits hopes to accomplish price stability by separating the coin’s currency and voting mechanisms, which will allow developers to tie the currency’s value to the value of United States Dollars at a 1:1 ratio.

Lee believes NuBits will appeal to potential cryptocurrency users because it will allow them to know the dollar-value of their coins without having to perform mathematical calculations.

NuBits Project Launches

Jordan Lee says that while Bitcoin and Peercoin are important inventions, they possess inherent flaws that render then unsustainable. He says their major flaw is that they simultaneously serve as both currency and shares. The NuBits whitepaper explains why this is a problem.

Currencies must have a stable value to be effective, while Peercoin and Bitcoin have exhibited exceptional volatility. Many argue volatility will end with the high liquidity that will accompany widespread adoption. While volatility will decrease with greater adoption, it is unlikely volatility will ever be less than occurs with large cap stocks such as Google or Microsoft. This is still an unacceptable level of volatility for a currency.

However, Lee says that even if volatility could be eliminated, that would hamper a coin’s ability to function as a “share.”

 Let us suppose I am wrong and that volatility will be eliminated in these networks. In that case they would serve well as currencies but poorly as shares, because they would not appreciate, nor give dividends. This would likely cause a selloff of these “shares”, thereby introducing volatility once again.

NuBits purports to avoid this problem by separating the NuBits network’s currency and voting facets into two separate entities. NuBits serve as the network currency, and NuShares facilitate the voting mechanism, and most importantly the introduction of new currency units.

NuBits as Currency

Perhaps the most frustrating part of engaging in cryptocurrency transactions is having to figure out the fiat-value of the coins involved. If someone wants to buy a $15 movie, he has to divide that by the current bitcoin price to figure out how much he owes. While not incredibly difficult, this can dissuade new people from entering the market.

NuBits hopes to avoid this friction by tying the price of NuBits to USD at a 1:1 ratio. According to the NuBits System, a $15 movie will always cost 15 NuBits, no matter how much the demand for NuBits ebbs and flows. By making it easier to figure out how much the dollar-value of an item is, people less-inclined to adopt cryptocurrency may be more easily persuaded to test it out.

When demand increases, shareholders will vote to create new coins to maintain the 1:1 ratio. When demand decreases, shareholders can vote to allow coinholders to accrue interest on their investment if they agree to “park” their coins for a set period. When demand is low, speculators may see incentive to acquire and then park their coins as a high-risk, high-reward investment should demand rise again.

At present, users can purchase NuBits on Bter.

NuShares

NuBits will enter circulation through the voting mechanism. Unlike most cryptocurrency voting systems, NuShares operates independently of the NuBits currency (though they can share a wallet).

Instead, NuShares are intended to be a source of network equity for developers, entrepreneurs, and speculators. NuShareholders can receive network revenues in the form of Peercoin dividends paid out by a custodian. NuShareholders can cast votes for actions that positively affect the Nu network. These actions help adjust the supply and demand for NuBits so that they will always remain at a long-term $1.00 US value.

The actions to vote on are Custodian votes, Park Rate votes, and Motion votes. NuShareholders will be able to vote on these three different network actions when a block is minted. By setting their vote in the client it will be recorded into the blockchain each time they mint a block. The purposes of these three categories of votes are to select custodians to maintain the network, choose interest rates for parking, and make decisions on the development of the network.

One interesting facet of NuShares is that it allows NuShareholders to choose who will receive newly-minted coins. People can submit proposals for why they should receive the coins, and NuShareholders can choose which they deem the most worthy cause. Perhaps a developer would like funding to build a project for the NuBits protocol, or a charity wants to raise funds for a cause. They can submit their proposal, and the NuShares community can debate and decide who to distribute the coins to.

Conclusion

NuBits is a unique idea, and it will be interesting to see how Jordan Lee and the NuBits team will work out the inevitable kinks that will arise. If NuBits are truly able to eliminate price volatility through their NuShares voting system, a somewhat uncomfortable question will arise. Is the altcoin community ready for a stable currency?

Cryptocurrency Education – Coin Academy

I’ve taken a break from writing here because I discovered that what’s been really lacking is better education about Cryptocurrencies.

To that end, my colleague Ric Shreves and I launched Coin Academy to contribute to better education about not only Bitcoin, but all of the major cryptocurrencies in use today: Ripple, Litecoin, Dogecoin, Darkcoin, Peercoin, NXT and BitsharesX.

Similar to the complementary currency movement I’ve been active in for over the past 20 years, there’s a lot of mutual misunderstanding, and education is the key to resolving that.

So, visit our site, and let us know what you think!

Philosphers of the Alternative Currency Movement: Murray Bookchin

It occurred to me, in talking with as many people in the crypto”currency” movement as I’ve met, that few have yet to delve into the theory and philosophy behind the broader movement for a new global decentralized monetary system. Aside from a few references to “trustless” exchange and other purely individualistic ideas, most have only dipped their toes in the shallow end of the Libertarian pool, the capitalist end. 

In the next few articles I would like to take you to the deeper end and introduce you to a few philosophers worth reading, whose works are easily available through quick searches of the internet and torrent libraries. 

In early 1990, I was a second-year student studying Political Science with a focus on Soviet Government, with the goal of being involved in managing relations between Canada and our neighbour to the north, Russia. I was walking through Fernwood in Victoria, BC, a quaint 100 year old suburb when I came across a community market. In among the vegetable and handicraft stalls was one of “those” ones, with pamphlets and sign-up sheets placed on it. I was expecting it to be one of the stalls of the environmental organizations protesting the destruction of pristine rainforest along the coast of British Columbia. In fact, it was a brochure for the Local Exchange Trading System, suggesting a shift to a new free economy between individuals.

Murray Bookchin - Libertarian Socialist

Murray Bookchin – Libertarian Socialist

In my backpack was the copy of ‘Post-Scarcity Anarchism’, a book I was reading that was quickly driving a wedge into my analysis of Capitalism via Marxism. Instead of presenting the idea that capitalism would end when some certain stage had been reached, at which time it would fall onto itself, Murray Bookchin posited that capitalism would collapse when the ecological system could no longer support an unlimited-growth economic system. And, that we should therefore stop analysing the present stage to know when the right time to strike would be, but in fact work to start the revolution from within the system, now. The focus should be on the community, and seek to correct the social irrationalities that, coupled with the competitive monetary system of capitalism, are leading us to ecological annihlation.

This matched exactly what I had in mind when I happened into the table presenting materials about the Local Exchange Trading System. To me, it showed that a monetary system that forces competition was part of the problem, and needed to be removed in advance of achieving a post-scarcity society, like Buckminster Fuller said :

“We should do away with the absolutely specious notion that everybody has to earn a living. It is a fact today that one in ten thousand of us can make a technological breakthrough capable of supporting all the rest. The youth of today are absolutely right in recognizing this nonsense of earning a living. We keep inventing jobs because of this false idea that everybody has to be employed at some kind of drudgery because, according to Malthusian Darwinian theory he must justify his right to exist. So we have inspectors of inspectors and people making instruments for inspectors to inspect inspectors. The true business of people should be to go back to school and think about whatever it was they were thinking about before somebody came along and told them they had to earn a living.”, which Bookchin would agree with by saying:

“In our own time we have seen domination spread over the social landscape to a point where it is beyond all human control…. Compared to this stupendous mobilization of materials, of wealth, of human intellect, of human labor for the single goal of domination, all other recent human achievements pale to almost trivial significance. Our art, science, medicine, literature, music and “charitable” acts seem like mere droppings from a table on which gory feasts on the spoils of conquest have engaged the attention of a system whose appetite for rule is utterly unrestrained.”

Further:

“The notion that man must dominate nature emerges directly from the domination of man by man… But it was not until organic community relation … dissolved into market relationships that the planet itself was reduced to a resource for exploitation. This centuries-long tendency finds its most exacerbating development in modern capitalism. Owing to its inherently competitive nature, bourgeois society not only pits humans against each other, it also pits the mass of humanity against the natural world. Just as men are converted into commodities, so every aspect of nature is converted into a commodity, a resource to be manufactured and merchandised wantonly. … The plundering of the human spirit by the market place is paralleled by the plundering of the earth by capital.” 

Conclusion:

A truly free society then is an anarchist society, one that has been liberated from the monopoly both of government and it’s freedom-taking, debt-based monetary system. In this way, ecological sustainability and the full-flowering of human potential may be achieved. 

“An anarchist society, far from being a remote ideal, has become a precondition for the practice of ecological principles.” 
― Murray Bookchin

“If we do not do the impossible, we shall be faced with the unthinkable.” 
― Murray Bookchin

Bibliography:

 

Bitcoin: A Revolution in Payments – Not a Revolution in Money

*work in progress

Bitcoin, the digital cryptocurrency that is getting the banking system’s ‘knickers in a knot’ for everything from its perceived secrecy, security and relative anonymity, to it’s disruptive payments technology, the Blockchain, makes many of us think the monetary revolution has finally arrived.

Sorry to break it to you, it hasn’t arrived — yet. 

Bitcoin resembles it’s arch-rival Fiat Money (national currencies) in several important ways:

  1. Issuance: Fiat Money is created through issuance of debt. Bitcoin is issued through the mining process and valued primarily through conversion of Fiat to Bitcoin. 
  2. Roles: Fiat Money and Bitcoin share the dual roles of money as a Store of Value/Wealth and Medium of Exchange. By design they seek to accommodate all functions of money in one form. This is important, I’ll explain at the end of this list.
  3. Wealth Pyramid: The Ratio of Wealth to Poverty in the current international monetary system is 88:1. In Bitcoin, the top 100 of 35,000,000 addresses hold nearly 1,600,000,000 of a total capitalization os 8,100,000,ooo. This is also a very unequal ratio.

Bitcoin differs from Fiat in one important aspect:

  1. Currency Stability Controls: The fiat system has a few mechanisms for controlling the value of currency, interest rates being the primary mechanism. Bitcoin does not have a stability mechanism. It’s basically the same as circulating shares in a company as money.  The function of Bitcoin as a Unit of Account fluctuates in value wildly, driving future cryptocurrencies toward Fiat Denomination.

The Bitcoin Dilemma

The dilemma stems from Bitcoins similarity with Fiat in being both a store of value and medium of exchange. In the Complementary Currency movement, we sought to separate these two functions into two or more different currencies, which is basically why we call them “complementary”. In the crypto ecosystem, this is best represented by Freicoin, which charges a holding fee on the currency to incentivize circulation over hoarding, which makes it an unattractive investment currency, as noticed on coinmarketcap where it’s sitting at around 65th place. The dilemma with Bitcoin then is whether to save it, expecting the value to rise, or to spend it because it’s so easy and that’s what should be incentivized to flatten the pyramid.

What’s coming up around the corner? Bitcoin and other cryptocurrencies denominated in Fiat values, putting control over currency stability in the hands of the bankers and machinery of banking.

Ridiculous! Why would Bitcoiners just go stab their currency in the back like that?

Now for some headlines to back me up:

July 9, 2014
Dollar Backed Digital Currency Aims to Fix Bitcoins Volatility Dilemma
http://blogs.wsj.com/moneybeat/2014/07/08/dollar-backed-digital-currency-aims-to-fix-bitcoins-volatility-dilemma/
Founded by Brock Pierce, a former Disney child actor who is now a prolific bitcoin investor, along with ad industry entrepreneur Reeve Collins and software engineer Craig Sellars, Realcoin is the latest in a wave of so-called Bitcoin 2.0 ventures…

5 July, 2014
“Bitcoin-backed Dollars” and How the Blockchain could Enable a Billion Unbanked to Enter the Middle Class
http://cointelegraph.com/news/111995/bitcoin-backed-dollars-and-how-the-blockchain-could-enable-a-billion-unbanked-to-enter-the-middle-class-patrick-dugan-interview

24 June, 2014
“The End of Bitcoin Volatility?” The Soft Launch of Bitreserve
http://www.coindesk.com/first-glimpse-inside-halsey-minors-new-payments-platform-bitreserve/
Bitreserve is founded by Halsey Minor, who also founded CNET.

Friends, these are not small-fry startups jumping up and down trying to gain attention and hopefully a slice of market share. These are projects being started by the founder of CNET, and a Bitcoin Foundation board member, among others!

Conclusion

The revolution in Money, the explosion of the emerging monetary ecosystem happens when the functions of money as a Store of Value and Medium of Exchange are separated. This was the case from ancient times, when Precious Metals and items were Stores of Value and only rarely and for large purchases as mediums of exchange while on the other hand Warehouse Receipts representing food and goods in actual storage were circulating as money.
Read “Debt: The First 5,000 Years“.

Then, once this has been achieved and we have a plethora of currencies around us to choose from, to use for specific purposes and according to certain incentives and to strengthen certain personal or community bonds, these currencies will have mildly fluctuating Units of Account that will remain stable over the long term. This being achieved by two main mechanisms, being issued as interest-free credit, and demurrage, a charge on the holding fee of money.

Money or items that are designed to function as a Store of Value, what Bernard Lietaer calls “Yang” currencies probably won’t be eliminated, just as there are still remnants of the Monarchy in some countries. But what will change is money as a currency, and Bitcoin will be merely a jumping board for people to join the emerging multi-currency monetary system.

Dollar-Backed Digital Currency Aims to Fix Bitcoin’s Volatility Dilemma

It’s happening much faster than i thought.

Dollar-Backed Digital Currency Aims to Fix Bitcoin’s Volatility Dilemma

Excerpt:

The startup, Realcoin, is set to announce that its digital currency, dubbed realcoins, will be backed one-to-one by a fully auditable reserve of dollars.

Founded by Brock Pierce, a former Disney child actor who is now a prolific bitcoin investor, along with ad industry entrepreneur Reeve Collins and software engineer Craig Sellars, Realcoin is the latest in a wave of so-called Bitcoin 2.0 ventures, which use bitcoin’s computer infrastructure to exchange property and execute contracts without third-party intermediaries. These projects open up bitcoin’s decentralized, peer-to-peer network to a variety of commercial uses beyond just transactions denominated in bitcoins.

Link to the article:

http://blogs.wsj.com/moneybeat/2014/07/08/dollar-backed-digital-currency-aims-to-fix-bitcoins-volatility-dilemma/

Bitcoin-backed Dollars

“Bitcoin-backed Dollars” and How the Blockchain could Enable a Billion Unbanked to Enter the Middle Class – Patrick Dugan Interview

http://cointelegraph.com/news/111995/bitcoin-backed-dollars-and-how-the-blockchain-could-enable-a-billion-unbanked-to-enter-the-middle-class-patrick-dugan-interview

In this interview, Patrick Dugan proposes to create a fund that will short Bitcoin and thus be able to issue a dollar-denominated circulating credit. By reducing the supply of Bitcoin further, it is expected that prices would rise, protecting the short position further and even offering dividends as the price of Bitcoin rises.

Your thoughts?

“The End of Bitcoin Volatility?” The Soft Launch of Bitreserve

bitreserve_accountJust a few days after my series of posts on cryptocurrency stability, a new bitcoin-only payments platform, Bitreserve, has opened its system for beta use. Bitreserve is founded by Halsey Minor, who also founded CNET.

Bitreserve enters the market somewhere between Coinbase, Bitpay, Circle and Ripple, offering ease-of-use for crypto-newbies and multi-currency accounts to provide some relative stability. Hence Bitreserve’s first (but probably not last) tagline: “The End of Bitcoin Volatility”.

Although there is no direct contact with the Banking System, meaning that Bitreserve is a Bitcoin in/Bitcoin out platform, Bitreserve allows people to diversify their risk in holding Bitcoin in an online wallet denominated in 5 different currencies. Holding funds in an online wallet is risky in an ocean filled with surfers and sharks.

The systems for increased transparency by providing records and audits is intended to assist the account holders to make better financial decisions with their Bitcoin, leading to increased stability in the currency. However, this is for the account holders in Bitreserve, not for the currency in the system.

Is it necessary to end Bitcoin volatility, as Halsey Minor is expecting consumers want? While this is still debatable, my bet is on the No side as small fluctuations in value provide useful signals that help us to adjust our economic behaviour. However, given Bitcoin’s small currency pool (presently at 2.5% of the market value of Google), it’s a safe bet that Bitcoin’s value in a variety of national currencies will be volatile throughout its lifespan.

A better question would be, what would consumers and businesses benefit more from? a new cryptocurrency whose value is either permanently stable as in the Gogo example, or relatively stable, as in the Terra example, or less stable as in the Bitreserve example, or wildly unstable, as in the Bitcoin example?

The link to the full article is here: http://www.coindesk.com/first-glimpse-inside-halsey-minors-new-payments-platform-bitreserve/

A Cryptocurrency with a Stable Unit of Value – Some Options Toward a Solution (5/5)

* work in progress

In the previous posts, I described the disincentives to using cryptocurrencies as currencies. Until there is a stable Unit of Value, it may be better to call them cryptocommodities that can circulate electronically.

The Community or Complementary Currency Movement, which predates cryptocurrencies by 30 years, debated constantly over the issue of whether or not to peg the currency to the national currency. Time-valued currencies with a national-currency value was one option that worked well for HOURS and Time Dollar currency systems, which set a standard for example of 1 Hour = $10. Each hour value could then circulate as either value.

Most other systems felt it was just too difficult to try and explain and educate about the new value to prospective members, and so they stuck with the dollar peg, with the idea that this would some day be removed once a better method was found.

In Argentina before 2002, the economy was running well enough with the Argentine Peso pegged to the US Dollar. When I was there in 1999 to attend the founding conference of the Latin American Socio-Economic Solidarity Network, the 500,000 members of the Red Global de Trueque (RGT) were circulating completely independent alternative currency notes that were pegged to the Argentine Peso and the Dollar. Then 2002 came, and the RGT crashed along with the Peso. There were reasons for this crash other than just the rapid change in Peso – Dollar valuation when the peg unhinged, but an independent and stable Unit of Value could have helped to prevent the RGT crash.

The Terra TRC was one step in the right direction, and the Gogo was another in a different direction. But these were ways of mitigating the inherent inflation in debt-issued national currencies. How might it look for inherently deflationary Mediums of Exchange like Bitcoin? Would an incentive be necessary to encourage people to move to a more stable Unit of Value? Should the stable Unit of Value be on a side-chain, or in another cryptocurrency?

Using the Gogo as a model, factoring in the total amount of currency to be issued according to any variety of proofing methodology, during a shorter specific Period than most existing cryptocurrencies, say 10 years, and in a series or periods so that new series may change in value, an amount could be found that would most resemble a national currency value that the users would be most familiar with, but not be pegged to a national currency.

Using the Terra TRC model, people would need to be familiarized with the Unit of Account that would be based on a basket of currencies and commodities. Many items cost relatively the same around the world, so this would not be impossible to achieve.

Would an incentive to convert be necessary? I don’t think so. Bitcoin and its could go on being the stock or commodity it is presently being traded as, and be the first point of entry to the new multi-currency world that is already here.

Effective commerce demands a relatively stable Unit of Exchange. Why haven’t cryptocurrency designers realized this?

Social Justice also demands a currency that is in the hands of the people. Should cryptocurrencies be accessible only to those who have other forms of money in the first place, and should everyone else have to wait for the trickle-down effect?

 

Ecological sustainability also demands a stable currency, one that prevents unnecessary speculation and stops unlimited growth on a finite planet.

Development is done, the Post-Scarcity Era is here. Shouldn’t a cryptocurrency also contribute to sustainability, or has nobody read Herman Daly or Bernard Lietaer or Murray Bookchin?

Your thoughts?

Example of a More Stable Currency: The Terra – Trade Reference Currency (4/5)

We Bitcoin enthusiasts need to brush up on our alternative currency history. Since 1980, alternative currency enthusiasts around the world began to tinker, individually and collectively, with new forms of money. Their tool? The computer. Long before the internet was invented, the computer helped us to organize our thoughts and design new concepts in ways many of us would have found impossible otherwise.

Bernard LietaerBernard Lietaer is often mentioned as one of the leading theorists of alternative currencies, in fact there was a post on the Ripple website that mentioned him just this morning, about financial inclusion, the idea that anyone, not just those who have money, should have access to money and banking services. 40% of the world’s people do not have this access.

Bitcoin is financially exclusive. You can’t just go online somewhere and download it for free, like you can with other kinds of complementary currencies. Bitcoin as a commodity currency harkens back to the days of Empire, while those of us working with complementary currencies believe that the future is with interest-free mutual credit currencies.

My point here is that many of the elements of better forms of money have been designed already, and designers of new cryptocurrencies should take a quick look back to see if there’s anything interesting. Freicoin, for example, draws from the work of Silvio Gesell and has implemented the concept of Demurrage, negative interest, into its cryptocurrency.

Now, regarding our ongoing discussion of stable currencies, Bernard Lietaer introduced the concept of the Terra Trade Reference Currency in 2010, as a way to “systematically stabilize the effects on the business cycle and re-align financial interests with long-term sustainability.”

[Sustainability? What's that? We can design a currency without unlimited planet-destroying growth built in? We'll talk about that later...]

According to the Terra Whitepaper, the lack of an international standard of value is behind much of the world’s currency instability, the boom-bust cycle and political-military conflict. The Terra, in summary, would be a privately-issued currency circulating alongside (complementary to) national currencies, “backed by a standardized basket of the most important commodities as well as some standardizable services traded in the global market”, with Demurrage at a rate of around 3.5-4% per year, charged in order to incentivize circulation over investment or hoarding, as well as to be inflation-proof by being issued only to assist the exchange of goods or services. To convert back from Terra to a national currency, a 2% fee would be charged.

The Terra concept sounds very much like what Bitcoin could have become, a stable international currency to replace the dominance of the US Dollar and whatever we know is backing it. Since Bitcoin is not going to become what the Terra had designed, will another alt coin be able to achieve this goal?

Endnote:

Oddly enough, Terracoin has nothing to do with Bernard Lietaer’s Terra currency, instead opting to become a prepaid-Bitcoin card. Gogocoin is not related to the Gogo, the completely stable currency I wrote about in my last post, whose design predates Gogocoin by about 15 years.  Too bad.

Working example of a Completely Stable Currency, the Gogo (3/4)

investorbrainAny currency that rises or declines in value too quickly discourages people from spending it, and they will look for other exchange options that are more stable. This is true for national currencies, that are inherently inflationary, as much as Bitcoin, which is inherently deflationary.

The Gogo is a design for a completely stable currency invented by Austrian Hans Eisenkolb in the small town of Grand Forks, British Columbia, Canada around the year 2000.  This town which has its own population of wild deer grazing the front lawns in the center of town is about a four hour drive through the countryside from Kelowna, where Ryan Fugger designed the concept for what is now known as Ripple classic.

Eisenkolb studied Silvio Gesell and his disciples Karl Walker, Otto Lautenbaxh, Otto Valentin, Fritz Schwarz and Rudoplf Steiner who went on to develop the well-known teaching methodology for the better part of the past 60 years.

Although barely noticeable, inflation is inherent in the present debt-based international monetary system. In the west, one will barely notice the rise in prices over a 3 year period. However, in developing economies where inflation is much higher, prices can increase several times over the same period.

The main problem with this is that price increases happen in advance of wage increases, so those who earn a salary are always making less in terms of what they can purchase, than their salary would earn if prices did not change. Inflation also means that the currency is always being devalued, so that today the value of a Canadian dollar or any national currency is much less than it was a decade ago. If you are old enough to remember the prices of goods from ten years ago, this is easy to see.

Eisenkolb’s solution then, was to peg the value of a Gogo to the value of a Canadian dollar in 1980. One could then chart the decline in the value of a Canadian dollar from that period using the official Consumer Price Index, which would then become the exchange rate for converting a Canadian Dollar into a Gogo.

Here’s an example from the Tauschring Hintertupfing:

Tauschring Hintertupfing

Knowing that the value of a Deutschmark, or a Euro would continue to decline, the holder would be incentivized to convert their national currency into the stable currency as soon as possible.

A popular myth says that Bitcoin is a non-inflationary currency, however this doesn’t mean much when the value of Bitcoin can rise or fall by 30% in a month. The main issue is stability in the unit of exchange.

Whether you purchased two Pizzas three years ago for 10,000 Bitcoin, now worth about $5,650,000 at June 2014 exchange rates, or purchased a $1 lighter three years ago which is now worth $560 dollars, or purchased Bitcoin when it was at $1,300 and reluctant to spend it at a +%50 loss, people holding Bitcoin are disincentivized from spending, and this is going to hinder its circulation as a currency for the foreseeable future.

The possibility of stablizing the value of a Bitcoin may come with the introduction of Side-Chains, or through an alt-coin, specially designed to be permanently stable.

The website archive for Gogo is here: http://www.hanseisenkolb.de/gogo.htm

Your thoughts?