Peter Bofinger — The Mechanics Of Cryptocurrency

More than 40 years ago, Nobel laureate Friedrich von Hayek published a small-scale mass inward which he called for the “denationalization of money.” For him, high inflation rates inward all countries were proof that states were abusing their monopoly on issuing banknotes, together with that solely somebody money inward contest could guarantee stable money. Hayek was to a greater extent than concerned amongst the regulatory regulation of contest than amongst the enquiry of how a competitive monetary arrangement could hold upwards concretely shaped.

The success of Bitcoin together with other cryptocurrencies today shows that at that spot is indeed a marketplace position for such a somebody consequence of money. It is nevertheless to a greater extent than than questionable whether a arrangement amongst somebody currencies tin genuinely supersede the state-organized monetary systems together with whether inward the destination a stable monetary arrangement volition emerge....

Denationalization of money would hold upwards the destination of national sovereignty together with hence the destination of the modern national pose down together with the Westphalian basis order, replaced past times a global marketplace position society. Whether this would hold upwards utopian or dystopian depends on one's assumptions together with value system.

INET
The Mechanics of Cryptocurrency
Peter Bofinger | INET Global Commissioner

ht/ Yves Smith at Naked Capitalism

See also

NATIONAL CONFERENCE OF STATE LEGISLATURES BLOG | NCSL BLOG
CRYPTOCURRENCY: CURRENCY OF THE FUTURE OR JUST Influenza A virus subtype H5N1 FAD?
Heather Morton, program main inward Fiscal Affairs, roofing fiscal services issues for NCSL