The Economist Who Predicted Cryptocurrency
Friedrich Hayek. Nobel prize winner in 1974 in Economics for his "pioneering work in the theory of money and economic fluctuations”
In 1976 Friedrich Hayek wrote
The Denationalization of Money.
The book argued for the end of the government’s monopoly on currency.
Introduction quote from the book
“In my despair about the hopelessness of finding a politically feasible solution to what is technically the simplest possible problem, namely to stop inflation, I threw out in a lecture delivered about a year ago a somewhat startling suggestion, the further pursuit of which has opened quite unexpected new horizons…
The further pursuit of the suggestion that government should be deprived of its monopoly of the issue of money opened the most fascinating theoretical vistas and showed the possibility of arrangements which have never been considered.” – F.A.Hayek
Thirty years later, the financial crisis of 2007 saw huge inflation, rising unemployment and sky-rocketing interest rates. It was considered the most serious financial crisis since the 1930s. Once again, the government’s monopoly on currency was questioned. On 3 January 2009, the first bitcoin was mined.
It was Hayek’s theory made practical.
Hayek’s theory in his book was that not only would the currency monopoly be taken away from the government, but that the monopoly on currency itself should end with multiple alternative currencies competing for acceptance by consumers. Cryptocurrencies continued to follow in the economist’s vision. Since the creation of the first bitcoin, 8,700~ crypto alternatives have been created.
Another visionary quotes that got stuck in my head and they’re worth mentioning.
“I don’t believe we shall ever have a good money again before we take the thing out of the hands of government.
We can’t take it violently out of the hands of government, all we can do is by some sly roundabout way introduce something that they can’t stop.”
”The chief evil is unlimited government, and nobody is qualified to wield unlimited power.”
I thought that you guys would like to hear this fact, that such a vision was written and told 40 years ago by someone that achieved something in his life. I know, that some of you don’t like, when we are sharing the quotes from the history figures because they said a good chunk of things that was false. In this case, I feel like, the vision that Mr.Hayek had, is becoming true, and everyday we’re closer to it.
Hope you found this “legacy” somehow educating or inspiring.
R.I.P Mr.Hayek – your vision is becoming reality 🙂
Have a nice day ! DCA and HODL !