http://ripplescam.org/

[bitchess]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

[Red]

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

It can't be done with self-referential code alone. Something needs to be able to observe changes in external demand for the coin. Inputting the "market price and depth" as it changes is one possibility. However, that initiates a cascade of design questions. Which market? Who inputs the data? How often? What if the dominant market changes? Who decides when to change markets and who inputs that data...

Ripple makes this closer to a possibility since trading happens INTERNAL to the Ripple system. However, there are still lots of other issues to consider.

[drawingthesun]

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

A solution to a hard problem like this may very well allow a crypto coin to overtake Bitcoin, do you agree?

[hdclover]

not a scam if u believe it

[bitchess]

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

A solution to a hard problem like this may very well allow a crypto coin to overtake Bitcoin, do you agree?

Yes and it would have the potential to eliminate inflation and deflation altogether as well as the need for a central bank.

[drawingthesun]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

What variables would need to taken in?

For example take a look at Bitcoin mining with the massive resources being put towards it. This is clearly a case of huge monetary demand, would the perfect algorithm increase or decrease the supply based on that demand? Would it be better to disallow mining altogether and use another variable, perhaps unique transaction info? In that case only transactions between aged unique wallets might allow for a input to allow for inflation or deflation. (aged wallets that are only transferring between other unique wallets that do not have too many connections to determine that they do not belong to the same person)

[bitchess]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

What variables would need to taken in?

For example take a look at Bitcoin mining with the massive resources being put towards it. This is clearly a case of huge monetary demand, would the perfect algorithm increase or decrease the supply based on that demand? Would it be better to disallow mining altogether and use another variable, perhaps unique transaction info? In that case only transactions between aged unique wallets might allow for a input to allow for inflation or deflation. (aged wallets that are only transferring between other unique wallets that do not have too many connections to determine that they do not belong to the same person)

This is what the fed uses as a baseline: http://en.m.wikipedia.org/wiki/Taylor_rule
But it assumes that you have the existence of a prevailing fed funds rate you can adjust (and a banking system as well)

You can't simply look at transaction volumes because people could just sell an apple to themself and control that number.  The demand for money must be linked to real economic activity.

[nyusternie]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

i like the way this sounds

+1

[bitchess]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

i like the way this sounds

+1

Thanks.  The "real values" part is the part that I find not feasible to put in an algorithm but let's see what the future holds.

[Red]

Thanks.  The "real values" part is the part that I find not feasible to put in an algorithm but let's see what the future holds.

Your ideas are very well reasoned and elucidated. Again, I encourage you to:
1) Introduce yourself here.
https://bitcointalk.org/index.php?topic=179918.0

2) Create a new thread that puts forth the ideas you've expounded here. Also, include the parts you think are infeasible. All of us are doing that.

Perhaps an odd combination of each of our ideas will turn out to be feasible. Please put [StableCoin] in the title of your new thread. That way like minded forum users will be able to find it when they search for the topic.

[bitchess]

Thanks.  The "real values" part is the part that I find not feasible to put in an algorithm but let's see what the future holds.

Your ideas are very well reasoned and elucidated. Again, I encourage you to:
1) Introduce yourself here.
https://bitcointalk.org/index.php?topic=179918.0

2) Create a new thread that puts forth the ideas you've expounded here. Also, include the parts you think are infeasible. All of us are doing that.

Perhaps an odd combination of each of our ideas will turn out to be feasible. Please put [StableCoin] in the title of your new thread. That way like minded forum users will be able to find it when they search for the topic.

ok I know, I'm talking about a topic that deviates from the thread subject.  My bad...  I'm just responding to responses to prior posts.

[cdog]

http://en.wikipedia.org/wiki/Confidence_trick

[cdog]

http://en.wikipedia.org/wiki/Default_%28finance%29

[🏰 TradeFortress 🏰]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

i like the way this sounds

+1

I don't think this is feasible. I could run a script to transfer money from A to B all the time. If you are thinking of "oh, then hard code a case to ignore that", you're thinking in the wrong direction because I'll just transfer from A to [B or C or D] to [A or B or C or D].

[nyusternie]

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

i like the way this sounds

+1

I don't think this is feasible. I could run a script to transfer money from A to B all the time. If you are thinking of "oh, then hard code a case to ignore that", you're thinking in the wrong direction because I'll just transfer from A to [B or C or D] to [A or B or C or D].

yeah, you're right, i really didn't take into account how easy it is to game some of these systems.  i was just reading a discussion https://bitcointalk.org/index.php?topic=166302 that talks about better ways to handle transaction fees, with a focus on how to prevent mining pool collusion from gaming that system.
 
with that said .. i never could have imagined someone (Satoshi) creating a system like bitcoin in my wildest dreams; so if someone (or more likely a team) with that same sense of vision would tackle this problem, it could certainly materialize into the next great coin

[🏰 TradeFortress 🏰]

Bump to prevent more people using ripple.

[cdog]

http://en.wikipedia.org/wiki/Racketeering

[virtualfaqs]

At 8500/BTC, 100 billion XRP is valued at 11.8 million BTC = $1.3 billion USD WTF! Of course this is due to the public scarcity. Still WTF! 

[nyusternie]

At 8500/BTC, 100 billion XRP is valued at 11.8 million BTC = $1.3 billion USD WTF! Of course this is due to the public scarcity. Still WTF!  

i came here to post the very same thing, but you beat me to it

was just on bitstamp and came across their Buy Ripples page
currently @ $1 per 50 XRP (seriously?)
that's a 2 BILLION DOLLAR valuation
don't see any way to actually SELL yet, but still, yeah, WTF!!!

with bitstamp (which i believe is the 2nd largest exchange) supporting ripple, do ya think maybe, just maybe, it might be time to flip that "code release" switch

edit:
even if the next massive giveaway was 5,000 XRP per account; that's literally giving everyone a hundred dollar bill to then unload on the free market; this decentralization plan of OpenCoin is making less and less sense to me

[virtualfaqs]

At 8500/BTC, 100 billion XRP is valued at 11.8 million BTC = $1.3 billion USD WTF! Of course this is due to the public scarcity. Still WTF!  

i came here to post the very same thing, but you beat me to it

was just on bitstamp and came across their Buy Ripples page
currently @ $1 per 50 XRP (seriously?)
that's a 2 BILLION DOLLAR valuation
don't see any way to actually SELL yet, but still, yeah, WTF!!!

with bitstamp (which i believe is the 2nd largest exchange) supporting ripple, do ya think maybe, just maybe, it might be time to flip that "code release" switch

edit:
even if the next massive giveaway was 5,000 XRP per account; that's literally giving everyone a hundred dollar bill to then unload on the free market; this decentralization plan of OpenCoin is making less and less sense to me

And this is why we should be getting an announcement any day now,

Due to the overwhelming success of Ripple XRP, we currently do not have any plans to make this project open source. Thank you and please continue making us money.

This will decrease the chance of competing ripple clones which would devalue the Ripple. But for the record, I don't consider this to be a scam and more like an innovative business venture.

Just to touch on your last point, if the Giveaway thread starts giving out $100 bill, then each bitcointalk account who has not posted in that thread will be valued at $80. Hacking, buying accounts, and dead accounts coming out of the woodwork will be rampant then it was at $10-$20 range before.