Bitcoin and Blockchain

Wednesday, February 7th, 2018

We’ve worked to counter the negative opinions of people at once-mighty institutions like the Bank for International Settlements and on. And the research you read here truly matters. AIER is not just another Medium account; it is one of the world’s most respected voices in economics. We have both the credibility and longevity.

To win this battle requires both theory and practice. The sustainability of this revolution depends on both. So please pull out those wallets and donate today. The AIER needs you. Crypto needs you. The future of freedom needs you.

Monday, February 5th, 2018

Blockchain technology won't truly be pervasive until people gain enough intuitive understanding of the technology to trust it. That could be a slow process.

Friday, February 2nd, 2018

It only takes a quick glance at recent news to know Bitcoin is volatile; its fluctuations in price have made headlines for months now. But exactly how volatile is it relative to commonly used currencies, and how does that affect this cryptocurrency’s ability to actually be a usable medium of exchange?

Monday, January 29th, 2018

Cryptocurrencies are still quite new and seem to just be scratching the surface of their potential. If they are to succeed — not only as a fringe medium of exchange or speculative investment, but as real competitors with government currencies — some new programmers are going to have to come along and make currencies whose digital coins are created in a much different manner than the current ones. Perhaps digital coins whose supply is determined by demand will lower volatility enough to cut the future uncertainty of prices. Those may be adopted as true media of exchange. Until that time, Hayek’s vision of private currencies will not be quite realized.

Friday, January 26th, 2018

While the nature of the news events does not necessarily explain the magnitude of Bitcoin’s price changes or its daily volatility, it does suggest that the market is not being driven entirely by manipulation or the behavior of small numbers of traders.

Thursday, January 25th, 2018

Like clearinghouse associations, the blockchain technology will further stabilize the banking system.

Saturday, January 20th, 2018

Is there a bubble in the ICO/blockchain startup space? Short answer: yes. Long answer: still yes, but it involves very little of the irrationality most people associate with such things, and shows just how important the underlying blockchain technology truly is.

Friday, January 19th, 2018

Blockchain is a technical innovation. But it is not an innovation in how we aspire to live. There is a big difference. The blockchain allows people to achieve something we have always wanted to do but haven’t been able to do until now. The stone money on the island of Yap is an example. 

Wednesday, January 17th, 2018

The bursting of bubbles can make insutries stronger.

Friday, January 12th, 2018

What Bitcoin and other blockchain-based cryptocurrencies do is allow transactions to happen in places where trust previously would not have been possible.

Tuesday, January 9th, 2018

Think about how many brilliant ideas may have been squashed because a would-be inventor was either turned down by traditional gatekeepers of funding, or because they lacked the network or social capital to even initiate the process.

Friday, January 5th, 2018

Had the state-backed systems of money and payments been working properly, and had been upgraded to work in the digital age, there would have been no need for crypto in the first place. This is the point that official organs will never admit.

Sunday, December 31st, 2017

A few years ago, Bernie Sanders uttered a passing comment that elicited howls of laughter among believers in competitive markets. “You don't necessarily need a choice of 23 underarm spray deodorants," he said. Today, many people are saying the same thing about cryptocurrencies. Why so many? What's the point? Why not one only or, actually, what not just stick with the dollar? The point is that we need a rivalrous process with free entry to discover the better way to do money. And we need this process to run forever. 

Saturday, December 30th, 2017

Much progress has been made. And, yet, there is still much room for improvement.

Thursday, December 28th, 2017

Nobody should celebrate a system of money and finance in which government controls the on-ramps and off-ramps based on political loyalties. That’s proven to be a very dangerous system. What we need is a censor-proof technology that can make prosperity possible for ever larger swaths of humanity. That’s not “evil”; it’s gloriously good.

Wednesday, December 27th, 2017

The bubble in comparing Bitcoin to the tulip bubble has gotten out of hand.

Tuesday, December 26th, 2017

We place our trust in financial intermediaries because they have made costly investments over time to engender that trust. Processing payments on a blockchain essentially avoids these costs.

Saturday, December 23rd, 2017

From the time Bitcoin was introduced, it faced ridicule, disgust, smears, and anger. Incredulity would naturally greet a technology that achieved something never before thought possible.

Friday, December 22nd, 2017

There are many intermediate cases where Bitcoin has value for specific applications, without “replacing” the dollar, gold, or any other major underpinning of the global financial system.

Tuesday, December 19th, 2017

Mass adoption of cryptocurrencies is unlikely to take place unless there is “significant monetary instability” or “government support” (fat chance, at least with bitcoin).