Academic Paper on bitcoin

Last year I published an academic paper in the Journal of Private Enterprise analyzing the economics of Bitcoin. Looking back, the parts of the paper with the most relevance today are the ones explaining the functioning of the bitcoin block-chain and the economics of the currency. Recent events make me think the discussion of smart contracts was too early and tangential to the paper.

You can download the paper here.

2 thoughts on “Academic Paper on bitcoin

  1. Michael Goldsholl says:

    Dear Saifedean,

    I heard your debate with Peter Shiff and I was overwhelmed by your brilliant argument.
    I do have an argument which I wish you had made use of with Mr. Shiff.

    Here is my point;
    Where is a wealthy person going to distribute their assets?
    NOTE: This list is in no order of importance.
    1 Land, Real estate, Farm Land
    2, Gold coins and not bars. and silver and the like
    3.Bitcoin, and digital currency basket
    4. Fine Art works.
    5. Precious stones, diamonds and the like
    6. Commodities , stocks, and bonds,

    by Virtue of any one of these being on the table it means that each will have significant endorsement of confidence.The one asset not on a welathy persons list is fiat currency of any kind other than menial
    regular conversions to cash in order to purchase that which only cash is accepted. And on the basis that the dollar is not on this list reduces specifically the value of the phrase Backed by the United States of America. Which by itself denies the traditional sense of power the US no longer has. Thusly The US Government will seek to benefit and take refuge in the only quality of bitcoin that puts it in one of the prize categories. A boundary of its total limited count. This number will not increase but decrease. The mining number will decrease and loss of codes will add to this loss. The liquified nature of the dollar is self-explanatory.
    Lastly, of the few assets on this favored list BTC is the only one who’s youth automatically leads to enormous growth, as a new company has a low PE. BTC is irresistible to holders and also at the same time investors of this 21st century of jewel. The enemy of bitcoin is not to be found on this list, but only and specifically the US Dollar is defeated by what was a flaw in the system of the greed of politicians who’s a conflict of interest has put the US into jeopardy. Simply putting one in the shoes of the fisherman, simplifies the notion that the less likely the dollar is to be on this list , the more Bitcoin is to being permanently on this list. The volatility in Bitcoin is understandable for two reasons. One perhaps added volatility is a last ditch effort by the powers that be on the dollars side,and secondly a 70 trillion times printing in forms of liquidity is self explanatory of the 100billion total value in BTC. How could anyone expect anything other than such volatility which diminishes with greater numbers of owners?

    I dare say that any intelligent person who is expecting the dollar to crumble anytime now is a holder of as much bitcoin as they can afford, and when within months BTC is 30,000 USD, the measure of inevitability will be forever less worrisome to future holders
    The dynamic importance of this list is that it is limited to five categories. One need not look further than such a person as one with enough wealth that they are required to choose categories to store and or invest their wealth, and Bitcoin is the closest replacement for currency that there ever will be.

    Thank you Michael G

  2. anonimous says:

    “There is no better evidence for this than the fact that the rarest metal in the crust of the earth, gold, has been mined…”
    Knowing that there are rarer metals. Would you concede and say that is rare enough? Maybe these rarer metals are TOO rare and don’t share the physical properties that gold has (I know that these properties don’t matter anymore, but they did matter once)

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