Bitcoin Forum

"PASSIVE BIBO CURRENCY IS THE FIRST MATHEMATICALLY AND SCIENTIFICALLY STABLE CURRENCY STANDARD WHERE MONEY BECOMES UNLIMITEDLY ABUNDANT WITHOUT LOSING STABILITY.  IT CAN BE DEPLOYED BY ANYONE, ANY TIME, ANY PLACE AND FOR ANY TRANSACTION. ONLY SUCH A STANDARD CAN STABILISE THE WORLD’S NATIONAL AND SUPRA NATIONAL CURRENCY FINANCES."

from:http://www.bibocurrency.org/English/English.htm (http://www.bibocurrency.org/English/English.htm)


The only reason im posting this here, is because i haven't seen any discussion on bibo currency on bitcoin forums. As bibo is very different(possibly opposite) concept to bitcoin, it nevertheless deserves discussion.

The purpose of this thread is to identify positives and negatives of Bitcoin and Bibo, and intelligently critique and compare them both.

Some see hoarding as big problem of bitcoin, Anthony Migchels explains his logic: 

"Further more: hoarding them WILL infringe on teh rights of others: they are no longer available to others to be used for their purpose: to be a means of exchange!" from:http://realcurrencies.wordpress.com/2012/05/18/bitcoin-impressive-but-flawed/#comment-3477 (http://realcurrencies.wordpress.com/2012/05/18/bitcoin-impressive-but-flawed/#comment-3477)

Put your hand up if you thought this post said BIEBERCURRENCY

Can you describe what BIBOCURRENCY is? I went to the site and it didn't say what it is and how it works in the introduction.

It appears to be a type of currency where new units are created by credit, and extinguished by repayment of credit. This makes it somewhat similar to mutual credit systems or to the models presented by Black, Fama and Hall (except the latter ones use interest).

In my opinion, systems like this require an exogenous definition of the unit (irrespective if it is, in reality, convertible). Therefore, it is strictly speaking not money in the narrower sense (like Bitcoin), it is a money substitute. If this link to the definition of unit does not exist or is severed, unless there is some other mechanism for braking the production other than the expansion of credit itself, the supply would increase until the cost of production and the market price equilibrate, which from a practical point of view means hyperinflation. Since BIBO appears to have a decentralised decision mechanism:


there appears to be no braking mechanism and it would be produced until the market price falls down to production costs.

It is also unclear to me how rules are enforced. As they refer to empirical data external to the BIBO network, rule breaches might not even be detectable. Also, what happens if someone goes bankrupt (noone wants to lend him anymore)? How to prevent people from accruing more debt onto new accounts? How to prevent someone from granting credit to himself (between two accounts)? These however are technical problems, not economic ones.

The claim that it is stable because inputs equal outputs is misleading. Both Mises and Rothbard already pointed out that expansion of credit is only limited by the requirement to redeem the money substitutes against money base and/or a monopoly position (or at least regulation as we have in banks) of the issuer. Absent this, the only other limit are the production costs. Merely because the system can have a defined equilibrium does not mean hyperinflation can be prevented. Any issue of money while its purchasing power is higher than the production costs redistributes purchasing power to the producer, therefore the optimal strategy is to produce as much as you can.

Last but not least, I do not see an answer regarding how to motivate people to use BIBO instead of any other currency. I argue that the choice of money is driven primarily by transaction costs, not necessarily by the features of the money supply. Unless BIBO offers lower transaction costs than Bitcoin, it cannot compete with it. So it would have to be forced on people anyway.

TL;DR: It's Ripple.

Looks like Ripple to me as well.  Also, whatever happened to Ripple? :(

It'll take a while to get going.

It's not entirely like Ripple, as Ripple does not enforce a particular unit, or rules under which credit might be issued.

Ripple would be great as a facebook app :)

In the 30 seconds it took to go over the scheme, it is too vague to not be corrupted. Instead of basing money on national debt, it is based on personal debt. It should be called GIGOCURRENCY for garbage-in, garbage-out. Bubbles will be created when overly assessed collateral is rehypothecated. There is no central bank to QE an out-of-control sector.

Good idea.

Also,
http://1.bp.blogspot.com/-yV_gb3w-MO8/TeOPLMezP1I/AAAAAAAAAXk/_CDAGPq4SeU/s400/comic-sans%2521.jpg

Thanks lonelyminer.


Thats all I needed to know.