Orwellian Bitcoin Economics

I found this tidbit of idiocy to be humorous:

Werner Antweiler, an economics professor at the University of British Columbia, is more than skeptical. He says Bitcoins magnify the same problems that exist with commodity-based currencies such as the gold standard, which he says was abandoned decades ago for good reason.

“As an economist, I think it’s just a stupid idea,” says Antweiler, who teaches about online commerce.

“I would tell everybody who thinks about participating, ‘Watch out, know what you’re getting into.'”

Antweiler says private currencies like Bitcoin will never rival the dollar, mainly because they are not legal tender. Businesses are required by law to accept the Canadian dollar but no one is obliged to take Bitcoins.

Consider that Antweiler says commodity-based currencies were abandoned decades ago for good reason…

…what reason may that be Antweiler?  Because the US defaulted due to the cost of the Vietnam war?    Wasn’t it Nixon who took the US off the gold standard because the government ran out of money?  I guess Antweiler thinks default is a good reason for dumping the gold standard.

Then Antweiler goes on to say that Bitcoins will never rival the dollar because the government doesn’t force anyone to accept Bitcoins as payment of debts.  Well Antweiler, please explain to me why commodity based currencies were dumped for good reason if no one would take fiat currency without the State shoving it down their throat?

If fiat money is so good, why does the State have to ram it down our throats at the point of a gun?  Did the State have to ram gold down people’s throats?  Of course not.

Further, if Bitcoins suck so bad, why are millions of people willing to pay over ten bucks for one Bitcoin voluntarily?  Is it because they are all a bunch of mentally handicapped people that just don’t know what’s best for them?

I guess you’re just so smart.

An economics professor who preaches that default is a great reason to dump a commodity based currency.

Here’s a great lecture by the late great Murray Rothbard on why the only legitimate money is commodity money.  Hopefully Antweiler googles himself, finds this article, and watches this lecture.  His students would thank him for it.



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  • TemujinBC

    His last statement is also quite something:

    “Still, Antweiler says Bitcoins should prompt a debate about online transaction fees, which drive up the cost of goods and make small payments more difficult”

    I can just imagine Antweiler saying “There ought to be a law….”

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  • Winston Smith

    If Bitcoins are such a libertarian alternative to fiat currency, then why did Jeff Garzik say during an interview with CBS News, “[BitCoin is] working with the government to make sure indeed that the long arm of the government can reach BitCoin” and that “the only way BitCoins are gonna be successful is working with regulation and with the government”?

    • It really doesn’t matter what Jeff Garzik says, because Bitcoin is just one flavor of the digital peer to peer currency.

      If Bitcoin becomes compromised by consensus of the dev team, then people will switch over to Solidcoin, or some other alternative.