From: Nathan Loofbourrow <loofbour@cis.ohio-state.edu>
Date: Wed, 23 Aug 95 09:35:56 PDT
To: cypherpunks@toad.com
Subject: The End of the Ecash Trial?
Message-ID: <199508231635.MAA07961@mummy.cis.ohio-state.edu>
MIME-Version: 1.0
Content-Type: text/plain


I have yet to see a date, but Digicash states several times in their
press releases that Cyberbucks are only a trial currency, and that at
some point in the future the trial will come to an end.

Will the bottom drop out of the c$ market at that point? Without
Digicash to authenticate currency, it would appear to be impossible to
trade c$ coins. If and when Digicash announces an end date for the
trial, I would expect to see quite a spectacular crash in the "real
cash for ecash" market.

The only way to preserve the market would appear to be providing an
ecash-for-ecash exchange with a new bank, presumably a licensee of the
Digicash software. Such a bank could, out of little more than good
will and a desire to kick-start a new e-currency, offer to exchange c$
for the new ecash. Or, perhaps we just shrug our shoulders, kiss our
hardly-earned Cyberbuck goodbye, and mumble about how it was fun while
it lasted.

Either way, in order to preserve the new e-currency's value -- and
correct my economics where flawed -- we need the assurance that the
money supply will not experience unreasonable growth. The ecash trial
has Digicash's promise of a c$1M cap; is this trust sufficient
leverage for the user to leave any amount of value in the Cyberbuck,
or its successor?

nathan