tag:blogger.com,1999:blog-8381613.post5789802375112432773..comments2023-04-03T19:10:54.088-04:00Comments on Critiques Of Libertarianism: Update on my Simple critique of BitcoinMike Hubenhttp://www.blogger.com/profile/01371469964446567690noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8381613.post-33638178778834521192013-12-06T06:39:15.792-05:002013-12-06T06:39:15.792-05:00It's clear that such "electronic" cu...It's clear that such "electronic" currencies suffer from a classical free rider problem. For each currency it would be advantageous if they would agree to restrict the total amount of such currencies in circulation. However, simultaneously it is beneficial for each separate currency to increase it's market share. Consequently each issuer of bitcoin-like currencies will produce more and more of it, so inflating the total supply.<br /><br />A more important critique of bitcoins is that it's based on a discredited theory of money. Classical economics argues that money is just a means of exchange, which is more efficient that pure barter. However, anthropologists and historians have pointed out that there's no evidence to support this hypothesis about the origin of money. Instead they argue that money originates from the government imposed compulsion to contribute to sacrifices. This obligation creates demand for the goods to be sacrificed, and hence these commodities get value.<br /><br />In modern world taxation fulfills the role of sacrifice. Mordanicushttps://www.blogger.com/profile/02555552511541697014noreply@blogger.com