My next “Advanced Topics in Law” class, which is scheduled for later today, will be devoted to Bitcoin and cryptocurrencies generally, so before I start blogging about Better Call Saul and the problem of illicit promises, I want to share two recent headlines regarding Bitcoin with my loyal followers:
For the record, here is a link to the Peter Thiel article (dated Oct. 21, 2021), and here is a link to the Jamie Dimon article (Oct. 11), but more importantly, who is right about Bitcoin: Thiel or Dimon? To the point, is Bitcoin an irrational bubble, or the best thing since sliced bread?
Bonus Video: Check out this entertaining rap battle between “Alexander Hamilton” (anti-crypto) and “Satoshi Nakamoto” (pro-crypto):
I love the Bitcoin debate. Its the best when you have Austrians arguing about. Exponents of the Austrian school tend to be split on whether or not Bitcoin should count as money. There are some that support a hard money standard (primarily gold). Citing Carl Menger’s regression theorem, that money must have prior use to be of any value.
A lot of Austrians tend to lean libertarian for some reason, and appreciate the fact that Bitcoin is not tethered to central bank. Depending on how you bend the regression theorem, you could argue that even government paper money (fiat currency) had a prior use. Central bank currency in a sense evolved from the promissory notes used in the years prior to the Federal Reserve Act, when full reserve banking for gold/silver (the U.S. was for a time centered on a silver standard per George Selgin) specie redemption was being practiced.
Excellent observations! I too am conflicted about Bitcoin and crypto generally …
It’s a fun debate.