{"id":301,"date":"2014-01-14T16:11:00","date_gmt":"2014-01-14T16:11:00","guid":{"rendered":"http:\/\/blog.holytransaction.com\/a-word-from-jeffrey-tucker-bitcoin-is\/"},"modified":"2022-01-27T15:25:13","modified_gmt":"2022-01-27T13:25:13","slug":"a-word-from-jeffrey-tucker-bitcoin-is","status":"publish","type":"post","link":"https:\/\/holytransaction.com\/blog\/2014\/01\/a-word-from-jeffrey-tucker-bitcoin-is.html","title":{"rendered":"A word from Jeffrey Tucker: Bitcoin is not a monetary system"},"content":{"rendered":"
<\/div>\n

(BitcoinMagazine<\/a>) Libertarian leader Jeffrey Tucker, CEO of Liberty.me and
\npublisher of Laissez Faire Books, shared with Bitcoin Magazine his views
\non how Bitcoin is NOT a monetary system.<\/p>\n

\n
<\/div>\n

Bitcoin Is Not a Monetary System <\/b>By Jeffrey Tucker<\/b><\/h2>\n
Every since I started writing about cryptocurrency last
\nSpring, my inbox has become a hub for Bitcoin questions. I completely
\nunderstand \u2013 even to me it\u2019s still the most implausible idea ever that
\nsome code-slinging, nameless geek somewhere could somehow invent a new
\ncurrency made from 1s and 0s, throw it out there on an open forum, and
\n(in a mere five years), it would obtain a market capitalization worth
\nnearly $10 billion.<\/div>\n
What does it all mean? Well, it took me some serious study
\nto figure out how all the technologies hang together and why.
\nUnderstanding Bitcoin requires knowledge of monetary theory, open-source
\nprogramming, distributed networks, cryptography, and process-oriented
\nsoftware development \u2014 and that\u2019s quite a big undertaking. This accounts
\nfor why people are so confused as to how a protocol could become the
\nbasis of a new global monetary order.<\/div>\n
However, I actually don\u2019t think that a lack of technical
\nknowledge really accounts for why even some very smart people are having
\na hard time making sense of the success of Bitcoin. A hint \u00a0towards the
\nanswer came in an email from a correspondent who asked me a particular
\nquestion about how contracts and accounting will work once Bitcoin \u201cis
\nimplemented as a currency.\u201d<\/div>\n
I got stuck on the word \u201cimplemented.\u201d That\u2019s the core of
\nthe fallacy; and, again, it is completely understandable. Hayek wrote in
\n1974 that governments have owned and managed monetary systems for many
\nhundreds of years, even back to the ancient world: the coin of the realm
\nhas been seen as a government responsibility. In the 19th century, all
\ngovernments were expected to implement a system that best met the needs
\nof the population.<\/div>\n
In the 20th century, government took this idea much
\nfurther. It would not just print the money, it would not just oversee
\nthe system and determine what constituted money, no \u2013 it would use
\n\u2018science\u2019 to find the optimal money-creation rate and cartelize the
\nbanking system to make sure that it was exactly as it should be. Every
\naspect of the money system \u2014 and we are talking about half of every
\neconomic transaction \u2014 would be overseen by the state in conjunction
\nwith private partners in industry.<\/div>\n
And so it has been for all these years. No living person
\nremembers a time when money had any existence outside public management.
\nIn effect, all governments of the world made money a socialistically
\nowned good. And what happened? It became a tool of politics; it declined
\nin quality, buying less and less in terms of goods and services; in
\neffect, it became the main means of funding the expansion of power over
\nliberty.<\/div>\n
The emergence of cryptocurrency smashes that paradigm
\nentirely. \u201cSatoshi Nakamoto\u201d never asked for anyone\u2019s permission to
\nrelease his code-based model for the ideal currency, he didn\u2019t submit a
\nworking paper to the National Bureau of Economic Research, he didn\u2019t
\nmeet with Federal Reserve economists, testify to the Senate Banking
\nCommittee, or get the ear of the chairman of the Fed. He went straight
\nto the public.<\/p>\n
<\/div>\n

He bypassed the entire structure of power and released it
\non a distributed network. He invited the world to participate. In other
\nwords, he was not proposing a system at all, it is not a top-down plan
\nfor monetary reform. We\u2019ve seen scads of those \u2014 thousands upon
\nthousands \u2014 emerge over the last hundred years. None of them have come
\nto anything. You can talk about monetary rules, policy reforms, audits,
\nand exchange rate fixes all you want, but here is the grim reality:
\ngovernment owns the money and it will use it to serve its ends.<\/p>\n<\/div>\n

That\u2019s why a totally different approach was necessary: the
\nfree market. The free market is not a system, it is not a policy
\ndictated by anyone in particular, it is not something that Washington
\nimplements, it does not exist in any legislation, law, bill, regulation,
\nor book. It is what you get when people act on their own, entirely
\nwithout central direction, and with their own property, and within human
\nassociations of their own creation and in their own interest. It is the
\nbeauty that emerges in absence of control.<\/div>\n
Does that sound like anarchy? It struck Karl Marx that way.
\nWhat he did not understand was the central insight of the liberal
\nrevolution of the 18th century: society can manage itself and create its
\nown beautiful order without any central control. Bitcoin is a
\nparadigmatic example, but only one of a million now emerging all over
\nthe world.<\/div>\n

Who or what is chronicling these revolutionary developments and
\nplotting to push them further as a means of achieving greater freedom in
\nour own lives, and therefore in society as a whole? Liberty.me. Our
\npurpose is to invite everyone into a close engagement with the wonderful
\nupheavals going on right now.<\/p>\n<\/div>\n

Open your free digital wallet here<\/a> to store your cryptocurrencies in a safe place.<\/p>\n","protected":false},"excerpt":{"rendered":"

(BitcoinMagazine) Libertarian leader Jeffrey Tucker, CEO of Liberty.me and publisher of Laissez Faire Books, shared with Bitcoin Magazine his views on how Bitcoin is NOT a monetary system. Bitcoin Is Not a Monetary System By Jeffrey Tucker Every since I started writing about cryptocurrency last Spring, my inbox has become a hub for Bitcoin questions. 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