ECB: “The theoretical roots of Bitcoin can be found in the Austrian school of economics”

12 comments on “ECB: “The theoretical roots of Bitcoin can be found in the Austrian school of economics”
  1. sam says:

    Stacy, great find. The whole section on Economic foundations of Bitcoin is interesting.

    esp. the ending; “The scheme is inspired by the former gold standard.” and the paragraph following.

    also from the conclusion;

    – could have a negative impact on the reputation of central banks, assuming the use ofsuch systems grows considerably and in the event that an incident attracts press coverage, since the public may perceive the incident as being caused, in part, by a central bank not doing its job properly;

    – do indeed fall within central banks’ responsibility as a result of characteristics shared with
    payment systems, which give rise to the need for at least an examination of developments and the provision of an initial assessment.

  2. Flopot says:

    Wery Interwesting! Downloading…

  3. stacyherbert says:

    @sam – thanks! in light of the mountain of hate spewed at us by precious metals bugs and/or libertarians and Austrians, it’s really fascinating to read this confirmation of almost exactly what we were saying over two years ago

  4. Wolferl says:

    I doubt that bitcoin has it´s roots in the so called “New Austrian economic theory”. Bitcoin is just another fiat money currency since it has no intrinsic value, no matter if you believe in an objektiv value of things or in an subjectiv value. Bitcoins do not exist, it´s a right or a claim and not a thing, so there´s no intrinsic value.

  5. Bitcoin and Why Mises’ Regression Theorem is Wrong – by Anthony Freeman

  6. Bitcoin and Why Mises’ Regression Theorem is Wrong – by Anthony Freeman

  7. febo says:

    Puts me in mind of this
    Techniques for Dilution, Misdirection and Control of an Internet Forum

  8. Hussein Badakhchani says:

    The reality is that in the wake of monetary and financial failure you will see people scramble to use whatever monetary system their neighbours and trading partners are willing to accept. Some will use bitcoins, most probably for remote transaction settlement, others will use precious metals and other still will create their own local currencies. The ECB doesn’t know anything about Austrian economics and probably less still about Bitcoin. Bitcoin has its followers, its benefits and its limitations, it could maintain and even grow its popularity as long as computing power or advances in mathematics don’t result in all the numbers meeting selection criteria are discovered and of course assuming its inventors don’t fiddle with the laws governing the range of valid numbers. You pays your money and you make a choice.

  9. Ilia says:

    Pretty well-researched article from what I read. I personally was introduced to Austrian economics through Bitcoin (Bitcoin introduced a lot of techies and science-people to monetary theory).

    For eg this forum page: which answers the “Bitcoin deflationary spiral” theory with Austrian economics arguments.

  10. pm says:

    no surprize bitcoin is viewed as an austrian invention. It’s the same as gold: deflationary in nature by virtue of its finite supply.