What if you had to spend your crypto currency within a certain length of time?
What I'm imagining is a currency that can't be hoarded or turned into a scarcity.
It would be designed to favor those who used their currency to purchase tangible items.
A single unit of currency (i.e. 1 AltCoin Dollar) would have to be spent within a certain time, or be forfeited. Where might this forfeited currency go? Perhaps it could be nullified and a new potential mining block be created.
The length of time one could "own" a certain unit of currency could be influenced by a number of factors if necessary.
The implications of a 10 year time limit would look much different than a limit of 7 days. Perhaps there is a sweet spot to this tweaking.
Obviously this would prevent people from just sitting on their wealth forever. It would encourage human interaction and spending of currency on tangible things, goods and services.
Has it been done and is it realistic?
BRING ON STEEMIT DEMURRAGE!!
That's a tax on money out of circulation if I understand right.
Correct. It can also be seen as galloping negative interest. SPEND OR DIE!!
Hmm, is that a dramatization? I don't think anyone has to die. It's just a fail-safe to prevent the concentration of wealth into a tiny group of people.
If you aren't spending your money, how badly do you really need it? How much extra ( beyond the standard of living cost) should you be allowed to have for personal gain?
Exactly. I can only smoke so many Cuban cigars in one day ;)
To answer your headline: Nobody would use it (outside an idiological circle)
And yes, that has been done several times by conventional money.
In case of crypto currencies that system would just be moved around by everyone having 2 wallets.
Thanks for replying @lennstar.
I imagine the ideological circle might grow to a large number of people
That's definitely a flaw. I wonder how that could be averted.