Money And Alternative Roles For Bitcoin – Bitcoin Magazine


This is an opinion editorial by Taimur Ahmad, a graduate student at Stanford University, focusing on energy, environmental policy and international politics.

Author’s note: This is the first part of a three-part publication.

Part 1 introduces the Bitcoin standard and assesses Bitcoin as an inflation hedge, going deeper into the concept of inflation.

Part 2 focuses on the current fiat system, how money is created, what the money supply is and begins to comment on bitcoin as money.

Part 3 delves into the history of money, its relationship to state and society, inflation in the Global South, the progressive case for/against Bitcoin as money and alternative use-cases.

Money, Society And The State

The guiding principle behind the Bitcoin standard is the separation of money and The State, borrowing from the enlightenment mantra of separating The State and religion. Admittedly, this sounds catchy and attractive, a true rallying cry (although I will say that even the separation of religion and state isn’t as distinct in practice as it is in theory). The argument seems to be that Bitcoin acts as some technologically juiced up version of the gold standard, where the money supply is exogenous, and The State enters the marketplace for money as any other entity would. This then constrains the capacity of The State to also embark on wasteful spending sprees and allows the flourishing of the market — a dream reality straight out of neoclassical economic textbooks!

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