The Bitcoin Standard: The Decentralized Alternative to Central Banking

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La segunda parte toca un tema especialmente controvertido como es la teoría monetaria. En este sentido, el autor tiene un enfoque 100% austriaco y aborrece al máximo las teorías keynesianas tan en boga en la actualidad. Very interesting book, but as someone experienced in the industry with an understanding of economic history I can't not oversee some blatant manipulation of data and history to push his agenda. The correlation and causation of things since changing from the gold standard to the fiat is a big one. today economics and societies are far more complex and way more interconnected, some of the blatant one are Sound money allows people to think about the long-term and to save and invest more for the future. Saving and investing for the long run are the key to capital accumulation and the advance of human civilization. The preferred type of coin was gold. It has a few unique qualities. First, it’s almost impossible to make or destroy. It also is fairly hard to retrieve from the ground, so you need to mine to get it, and the more you get, the deeper you have to mine. So even as technology has improved for gold mining, the supply of gold grows both slowly and predictably.

Everything you need to know about the Bitcoin Standard - Luno Everything you need to know about the Bitcoin Standard - Luno

It is perhaps one of the most remarkable achievements of the Internet that an online economy that spontaneously and voluntarily emerged around a network designed by an anonymous programmer has grown, in nine years, to hold more value than is held in the money supply of most nation‐states and national currencies. Bitcoin can be best understood as distributed software that allows for transfer of value using a currency protected from unexpected inflation without relying on trusted third parties. In other words, Bitcoin automates the functions of a modern central bank and makes them predictable and virtually immutable by programming them into code decentralized among thousands of network members, none of whom can alter the code without the consent of the rest. The second half of the book is largely raw Bitcoin Maximalism. Not all of it is wrong per se, but it reeks of a zealotry. The sections of the book covering the scaling debate are incredibly biased, presented without nuance, and even factually wrong in many places. Svojo celotno kariero sem preučeval dela o monetarni teoriji, zlatem standardu, primerjalnih monetarnih sistemih, centralnih bankah ter o predlogih za monetarno in finančno reformo. Le peščici knjig, ki sem jih prebral o katerikoli izmed teh tem, bi pripisal odlično oceno. Knjiga dr. Ammousa, Bitcoin standard, poleg odlične obravnave teh tem vsebuje tudi enega redkih razsvetljenih in poučnih opisov bitcoina, na katere sem naletel, in predstavlja nujno branje za vse, ki jih zanima morebitna vloga bitcoina v sistemu svobodnega in zanesljivega denarja prihodnosti.” – Dr. Joseph T. Salerno, Inštitut Mises O KNJIGI Bitcoin Standard Hashrate Token (or BTCST token) aims to widen up the participation of Bitcoin mining to the open market. Each BTCST represents 0.1 TH/s of Bitcoin mining power and by staking it, holders of the token are entitled to receive daily distributions of Bitcoin mined.

The Bitcoin Standard Summary/Review

Hint, there isn't anything. The author just doesn't understand what nodes are doing under the hood to realize the processing of transactions as he described it is basically the extent of what a node does. The fatal flaw of socialism that Mises exposed was that without a price mechanism emerging on a free market, socialism would fail at economic calculation, most crucially in the allocation of capital goods Had European nations remained on the gold standard, or had the people of Europe held their own gold in their own hands, forcing government to resort to taxation instead of inflation, history might have been different. It is likely that World War I would have been settled militarily within a few months of conflict, as one of the allied factions started running out of financing and faced difficulties in extracting wealth from a population that was not willing to part with its wealth to defend their regime’s survival. But with the suspension of the gold standard, running out of financing was not enough to end the war; a sovereign had to run out of its people’s accumulated wealth expropriated through inflation.

The Bitcoin Standard: The Decentralized Alternative to

The wonders of the twentieth century’s improvements make it easy to forget that the actual inventions—the transformative world‐changing innovations—almost all came in the golden era.Ammous describes what BTC has become in its promoters’ eyes: “a global hard money” to store financial wealth, which third party intermediaries can hold and trade on their platforms, much like banks do now. Noting the incongruity, he writes, “While this view of Bitcoin might sound like it is a betrayal of Bitcoin’s original vision[correct, emphasis added] of fully peer-to-peer cash, it is not a new vision.” The digital-gold-as-universal-money idea had indeed been around for over a decade before the white paper. But this had little (if anything) to do with Satoshi’s white paper, and was not the problem Satoshi was trying to solve: ‘casual’ transactions (read small and uneconomic for banks) settling with electronic cash without the need for a fiduciary intermediary. Bitcoin has a huge advantage over gold in transactions: clearance does not require a specific custodian. No government can control what code you have in your head. In a free market economic system, prices are knowledge, and the signals that communicate information. El Salvador recently became the first country to accept Bitcoin as legal tender. In doing so, it effectively became a guinea pig for Satoshi Nakamoto’s original vision – and made them a lot of friends in the Bitcoin community in the process.

Bitcoin Standard Podcast - Saifedean Ammous The Bitcoin Standard Podcast - Saifedean Ammous

While microeconomics has focused on transactions between individuals, and macroeconomics on the role of government in the economy, the reality is that the most important economic decisions to any individual’s well‐being are the ones they conduct in their trade‐offs with their future self. In retrospect, the major difference between World War I and the previous limited wars was neither geopolitical nor strategic, but rather, it was monetary. Someone who knows the history of the Great Depression and Bretton Woods era may well recognise the characterisation of this era as a fairy tale. Stylistically, it’s essentially an extended, but bad, undergraduate essay: ranting and polemical. At its low points it’s moronic. Everything Ammous doesn’t like about the period is lumped into the devil incarnate, ‘Keynesian economics’, presented as one homogenous, sub-intellectual blob of stupid ideas, driven by the vanity of self-serving bureaucrats and academics. Any subtlety about the notion of good or bad political governance is simply a manifestation of the ‘Keynesian deluge’. The fact that many high-profile followers of Keynes actively refer to this ‘Keynesian Economics’ as ‘Bastard Keynesianism’—for more nuanced reasons—completely escapes Ammous. the fundamental driver of human progress is not raw materials, but technological solutions to problems. Technology is by its nature both a non‐excludable good (meaning that once one person invents something, all others can copy it and benefit from it) and a non‐rival good (meaning that a person benefiting from an invention does not reduce the utility that accrues to others who use it).Market participants can enter and exit Bitcoin mining exposure in any size, any time, at a low cost than actual physical bitcoin mining which requires maintaining a mining rig. Considering "politics" in the digital space (because money is inextricably tied to politics) has forced me to evaluate and work with some things. Now of course cash (which is what Bitcoin is) in and of itself on a functional basis is non political. It's simply cash. Yet a lot of the innovations and cryptographic history behind bitcoin have come out of the more libertarian/anarchist mindset. Certain ideas of libertarians have always appealed to me and this book is a libertarian (Austrian school specifically) perspective. For example, none of us like big government and big tech peeking into our lives and date and I don't believe anything which doesn't directly harm another should be illegal. I certainly agree with the rules being the same for everyone, multinationals included. Note: this is a pretty “rough” review. There was a lot of material in this book, and I hope at some point to give it a second read-through and then re-write this review, to provide a better survey of key points and a more nuanced treatment overall.] Asking citizens in surveys is a meaningless exercise, because people’s choices are meaningless without a price to reflect the real opportunity cost involved in trade‐offs between choices.