Bonds and other economic ideas

[CoinHunter]

Recently on the SolidCoin forums there was a thread about upcoming ideas for a future version. One of these was the concept of bonds, whereby you forfeit your SolidCoins for X months and get a return of Y at the end of it :-

http://solidcointalk.org/topic/584-discussion-future-solidcoin-ideas/

Are there any economists here that would like to see something similar incorporated into Bitcoin? Or any ideas in general about economic improvements they would like to see in cryptocoins?

[PatrickHarnett]

I wouldn't normally respond to a question like this, but suggest you spend some time reading the "lending" thread.  Bonds already exist in various forms ranging from call deposits to fixed term facilities.  There are also bond offerings on GLBSE.

In cryptocurrency terms, they have been around quite a while.

[PatrickHarnett]

I thought that might have been part of the idea, but if you mine a "bond coin" for delayed gratification with a payout x-months down the track, that could be one hell of a monster.  Might be ok for an opt-in solo miner, but for a pool operation?  "Mine for HJK-pool and get paid eventually some coins and more."  Sounds weird.

[CoinHunter]

As far as I understand the SolidCoin idea, they want to give the ability to gain interest on funds you lock away for X months. So perhaps it's 3% if you lock your coins away for 12 months.

SolidCoin doesn't have a max coin potential like Bitcoin, but it's rate of generation depends on the amount of energy mining it. So this bond idea would be another way to give certain businesses a way to guarantee an increase in their SolidCoins which could then be used for more riskier investments. At least that's what I got from it.

[benjamindees]

Bonds are basically loans granted against the productive capacity of an entire economy.  They are called "bonds" for a reason:  they are not voluntary.  Of course I would not want to see anything like that incorporated into Bitcoin.

[Haplo]

As far as I understand the SolidCoin idea, they want to give the ability to gain interest on funds you lock away for X months. So perhaps it's 3% if you lock your coins away for 12 months.

SolidCoin doesn't have a max coin potential like Bitcoin, but it's rate of generation depends on the amount of energy mining it. So this bond idea would be another way to give certain businesses a way to guarantee an increase in their SolidCoins which could then be used for more riskier investments. At least that's what I got from it.

Depends on what they mean by "higher risk". Lenders and investors generally avoid "high risk" investments for a reason. (see: CMBS)