Bitcoin and “the denationalization of money”

Bitcoin is in the news again with the Winklevoss Twins testimonies and the indictment of some persons involved in a Bitcoin exchange.

There has been surprisingly little research on Bitcoin from academics. Partially this may reflect a disinterest, or a lack of knowledge of how it works, or a dismissive attitude towards it as ‘faddish’. That said, Bitcoin seems to be staying the course so far, and it would not be surprising to see more serious academic research emerging. It seems an ideal focus for monetary theorists. Here – Economics of Bitcoin – is one paper by Gerard Dwyer,  a very well respected economist (who also worked as a senior central banker).

It concludes very favourably for Bitcoin – “The design of Bitcoin and similar currencies does not have any inherent flaw

 

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2 thoughts on “Bitcoin and “the denationalization of money”

  1. rationalv2

    In many ways, academia is even more entrenched in the status quo than the rest of society. Contrary to popular opinion, new ideas are often not welcomed with open arms.
    Bitcoin is so very different than the centrally controlled FIAT currencies of today, that most academics don’t know what to make of it. They just don’t understand liberty, they can’t see the value of decentralization, and they can’t see how something can be both unregulated and good at the same time. It blows their feeble little minds.
    It doesn’t surprise me at all that academia isn’t paying much attention to Bitcoin. But you’re right: they really should be. It’s a real-life lesson in how free markets work, and it’s happening right now.

    Reply

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