With bitcoin pushing $100 billion in market capitalization, the flagship crypto is attracting mainstream investors around the world – people who were initially skeptical of digital, non-fiat cash. So what do traditionalists who are familiar with “hard money” bring to a growing crypto community?
“They can bring a knowledge of monetary fundamentals,” says Jeffrey Tucker, an economist and founder of Foundation of Economic Education (FEE). “One of the things you learned about the bitcoin community between 2008 to 2014 is that it mostly consisted of computer scientists and code geeks who didn’t know a lot about monetary theory. The ‘hard money’ community brings knowledge of economics and money.”
Gold and silver have been used as hard cash since the dawn of civilization. Tucker believes that the language of crypto is rooted in age-old money practices. “Many of the metaphors we used in the crypto world come from the history of gold standard. This is why we talk about mining, proof of work, cold storage and so on.” Tucker adds, “Understanding the gold standard can give you insight into why bitcoin works the way it does.”
But as mainstream investors normalize the use of bitcoin, author Wendy McElroy cautions in “The Satoshi Revolution” that history is full of examples where private mints were ungraciously pushed aside in favor of monopolistic state presses. “Government is threatened and wants a monopoly [of cash issuance]. Cryptocurrencies … can expect the same treatment from governments around the world: a mixture of banning, obstacles, absorption and punishment,” she writes.
Full story at http://bit.ly/2hxz9Lg
Source: Bitcoin News
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