Paul Grignon's Digital Coin

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Morpheus's picture
Morpheus
Status: Diamond Member (Offline)
Joined: Dec 27 2008
Posts: 1200
Paul Grignon's Digital Coin

You just have to absolutely see these two videos found in this link.

 

http://www.digitalcoin.info/

Wow.

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1325
Re: Paul Grignon's Digital Coin

Interesting concept, but I see one issue with self credit.  Say your a producer and you've done a great job.  Everyone trusts your credit coins.   So you decide it's time to retire.  You simply issue lots of credit coins which you never intend to honor.  You buy lots of goods with them.  While this is clearly fraud it can be rampant because the digital coin system removes external hard risk controls from the system. 

I don't think this type of system is needed.  You simply remove the fractional reserve banking issue and individuals have to make a choice between investing (money is loaned) and saving (money is stored). In the digital coin video,  they consider scarcity of coin a reason to implement this type of system which is highly dependent upon digital technology.  However, once you go digital, scarcity is no longer a problem since you can always subdivide the money by using another digit to the right of the decimal point.   That is, digital money is a perfect unit of measure since it can be infinitely divided as it's value increases.

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
Re: Paul Grignon's Digital Coin

It is an interesting idea but I think there might be issues to work out.  Do people really want the value of what is in their wallet to fluctuate?  Seems like constantly worrying about the current value of your credit coins might be a bit troubling.

How would you save for retirement?   There would need to be enough real digital money to allow long term savers to convert their money into a long term instrument without credit risk.  Also without a central clearing party, this system could be prone to a cascading systematic failure due to the counter party risk.

It kind of reminds me of the current system of OTC derivatives.   We all know how that worked out.

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