There’s More than One Way to Make Stablecoins Safe

– November 19, 2021

“The PWG’s worries for the safety of stablecoin users are most applicable to one set of stablecoins: the set including USD Coin and Tether. A ‘banks-only’ model may be an improvement for some stablecoins, but it certainly isn’t the only way to ensure stablecoins are safe.” ~ J.P. Koning


Mises’s Regression Theorem, Bitcoin, and Subjective Value Theory

– November 14, 2021

“If value is subjective, and if a medium of exchange is a good like any other, then how can we say that a good could not first be valued by some person somewhere as a medium of exchange rather than for some other purpose beforehand?” ~ Emile Phaneuf III


The Use of Incentives in Crypto

– November 13, 2021

“Unlike nation states or oligopolistic markets (think utilities, telecommunications or social media) where the costs of consumers/producers exiting are high, or where exit options are scarce, the bulwarks against predatory governance are far weaker.” ~ Donovan Choy


Cryptocurrencies and the National Bank Act: Learning the Wrong Lessons from History

– November 3, 2021

“Perhaps the cryptocurrency market would benefit from regulatory oversight. But the regulators are certainly wrong to base their case on the historical experience of the US. The lesson they should learn from history is that regulation can be detrimental.” ~ Nicolás Cachanosky & William J. Luther


Was Satoshi Nakamoto Right about Bitcoin Payments?

– November 3, 2021

“Satoshi was correct that card systems work ‘well enough for most transactions’ and thus bitcoin had but a bit part to play in payments. But he was wrong about bitcoin being useful with retailers for small payments and non-reversibile retail payments.” ~ J.P. Koning


What Progressives Miss in the Bitcoin Energy Debate

– October 26, 2021

“If progressives such as Elizabeth Warren extended their publicly held values of ‘fearless consumer advocacy’ to also apply to those outside the western world, they would see the value of Bitcoin.” ~ David Waugh


What If a Great Crypto Crash Is Coming?

– October 22, 2021

“Were the world to experience a new economic downturn, there is a great possibility that this lack of consumer use will show the current valuation of Bitcoin to have been a bubble. If this happens, a lot of retail investors will suffer.” ~ Benjamin Juhlin


Fast Payments Enable Lightning Kidnappings in Brazil

– September 28, 2021

“The only way that the Banco Central do Brasil could completely end PIX-based lightning kidnapping would be to slow the entire system down. That would mean cutting regular Brazilians off completely from the benefits of real-time payments.” ~ J.P. Koning


The Irony of China’s Most Recent Bitcoin Ban

– September 27, 2021

“With the Evergrande crisis looming in the background, the crypto universe being pilloried by Chinese authorities as a ‘growing threat to financial stability’ and ‘disrupt[ive] to economic order’ is more than simply ironic. It is irony at its most mordant.” ~ Peter C. Earle


Trouble Transacting with Bitcoin

– September 14, 2021

“Problems with bitcoin’s design––including its suboptimal supply constraint and limited transactions capacity––cast doubt on the claim that bitcoin is superior to the monies widely used at present.” ~ William J. Luther


What’s Wrong With Bitcoin’s Supply Mechanism?

– September 10, 2021

“Bitcoin’s supply mechanism fails to provide a long-run nominal anchor or promote monetary stability. A better money would employ a supply mechanism that offsets changes in the demand to hold it.” ~ William J. Luther


El Salvador’s Bitcoin Introduction Hits Early Snags

– September 8, 2021

“Other nations would be well advised to use El Salvador’s missteps as a guide for their own such attempts. And to suffuse their embrace of crypto beyond considerations of technology, observing its fundamentally libertarian spirit as well.” ~ Peter C. Earle