There have been a few already made, check out the Alternative Cryptocurrencies forum on bitcointalk.
The problem with a coin like this is initial adoption (which is required to create the network effect that makes the coin useful). Why would anyone put serious money into a currency that is guaranteed to lose value forever through inflation and with no useful network?
The only reason inflation works for a currency like USD is because there are already billions of users locked in by the extremely large network effect, and similar inflation on any viable alternatives like the EUR.
Look at inflating currencies with smaller networks (south america) and how hard it is to keep people from getting rid of that money, usually it requires government (violent) intervention.
Because money is a medium of exchange, and has no inherent value. Hoarding cash is equivalent to destroying production-- by then time you try to spend it, there won't be anything left to buy. Inflation encourages people to be active in the system, exchanging to produce real value, not staring a the charts of growth of imaginary wealth that means only as much as a video game high score board.
That sounds awfully counter-intuitive. Before there'd be nothing left to buy, the prices of things to buy would go up (i.e. inflation), which would discourage further hoarding.
Comments
There have been a few already made, check out the Alternative Cryptocurrencies forum on bitcointalk.
The problem with a coin like this is initial adoption (which is required to create the network effect that makes the coin useful). Why would anyone put serious money into a currency that is guaranteed to lose value forever through inflation and with no useful network?
The only reason inflation works for a currency like USD is because there are already billions of users locked in by the extremely large network effect, and similar inflation on any viable alternatives like the EUR.
Look at inflating currencies with smaller networks (south america) and how hard it is to keep people from getting rid of that money, usually it requires government (violent) intervention.
Because money is a medium of exchange, and has no inherent value. Hoarding cash is equivalent to destroying production-- by then time you try to spend it, there won't be anything left to buy. Inflation encourages people to be active in the system, exchanging to produce real value, not staring a the charts of growth of imaginary wealth that means only as much as a video game high score board.
That sounds awfully counter-intuitive. Before there'd be nothing left to buy, the prices of things to buy would go up (i.e. inflation), which would discourage further hoarding.
Hoarding cash does not destroy production, as the number of units of cash in circulation does not affect economic productivity.