Тег: Tucker

Happy Anniversary!

Bitcoin has just broken a trillion dollars in market capitalization. That is more than the Russian ruble, but still less than the Swiss franc. If any of my readers still haven’t bought at least a little bit—believe me, I sincerely sympathize with you, but you should still try to make a decision. Even at the cost of slightly reducing consumption.

By the way, speaking of reducing consumption. Zolotorev recently posted a translation of an article by Jeffrey Tucker about how Bitcoin is changing consumer behavior. The article is very interesting, and I have fully experienced this effect myself. So, if anyone wishes to immerse themselves in the spirit of the 19th century—welcome to Bitcoin.

Libertarians campaign so actively for cryptocurrencies and Bitcoin in particular; why are they not bothered by the fact that this seriously contradicts the gold standard, which 19th-century liberals and, for example, Mises and Rothbard, cared so much about?

Wild Turkey

Mises, in creating the theory of money, formulated the regression theorem, according to which the current value of money is determined by its yesterday’s value, and this can be traced back to the moment when money was an ordinary commodity having only simple consumer value.

The fact that gold specifically became the single standard for backing money by the 20th century was the result of government regulations; prior to that, a bimetallic standard had taken hold in a free banking system, which is described in sufficient detail by the aforementioned Rothbard.

Another libertarian classic, Hayek, openly advocated for private money…

In order to understand exactly how and why bitcoin acquired its value, I recommend reading the classic article by Jeffrey Tucker, kindly translated in 2014 by the Bitnovosti resource.

Thus, bitcoin, acting as digital peer-to-peer gold, does not contradict economic theory as presented by both the classics of the Austrian School of Economics and their modern followers.

And yes, it is high time to donate a few bitcoins to the development of the channel: 1A7Wu2enQNRETLXDNpQEufcbJybtM1VHZ8