Rating: Not rated
Tags: Business & Economics, E-Commerce, General, Blockchain, Lang:en
Publisher: John Wiley & Sons
Added: March 28, 2020
Modified: November 5, 2021
Summary
When a pseudonymous programmer introduced “a new
electronic cash system that’s fully peer-to-peer, with
no trusted third party” to a small online mailing list
in 2008, very few paid attention. Ten years later, and
against all odds, this upstart autonomous decentralized
software offers an unstoppable and globally-accessible hard
money alternative to modern central banks. The Bitcoin
Standard analyzes the historical context to the rise of
Bitcoin, the economic properties that have allowed it to grow
quickly, and its likely economic, political, and social
implications. While Bitcoin is a new invention of the digital
age, the problem it purports to solve is as old as human
society itself: transferring value across time and space.
Ammous takes the reader on an engaging journey through the
history of technologies performing the functions of money,
from primitive systems of trading limestones and seashells,
to metals, coins, the gold standard, and modern government
debt. Exploring what gave these technologies their monetary
role, and how most lost it, provides the reader with a good
idea of what makes for sound money, and sets the stage for an
economic discussion of its consequences for individual and
societal future-orientation, capital accumulation, trade,
peace, culture, and art. Compellingly, Ammous shows that it
is no coincidence that the loftiest achievements of humanity
have come in societies enjoying the benefits of sound
monetary regimes, nor is it coincidental that monetary
collapse has usually accompanied civilizational collapse.
With this background in place, the book moves on to explain
the operation of Bitcoin in a functional and intuitive way.
Bitcoin is a decentralized, distributed piece of software
that converts electricity and processing power into
indisputably accurate records, thus allowing its users to
utilize the Internet to perform the traditional functions of
money without having to rely on, or trust, any authorities or
infrastructure in the physical world. Bitcoin is thus best
understood as the first successfully implemented form of
digital cash and digital hard money. With an automated and
perfectly predictable monetary policy, and the ability to
perform final settlement of large sums across the world in a
matter of minutes, Bitcoin’s real competitive edge
might just be as a store of value and network for final
settlement of large payments—a digital form of gold
with a built-in settlement infrastructure. Ammous’ firm
grasp of the technological possibilities as well as the
historical realities of monetary evolution provides for a
fascinating exploration of the ramifications of voluntary
free market money. As it challenges the most sacred of
government monopolies, Bitcoin shifts the pendulum of
sovereignty away from governments in favor of individuals,
offering us the tantalizing possibility of a world where
money is fully extricated from politics and unrestrained by
borders. The final chapter of the book explores some of the
most common questions surrounding Bitcoin: Is Bitcoin mining
a waste of energy? Is Bitcoin for criminals? Who controls
Bitcoin, and can they change it if they please? How can
Bitcoin be killed? And what to make of all the thousands of
Bitcoin knock-offs, and the many supposed applications of
Bitcoin’s ‘blockchain technology’? The
Bitcoin Standard is the essential resource for a clear
understanding of the rise of the Internet’s
decentralized, apolitical, free-market alternative to
national central banks.