Crypto May Fulfill Nobel Winner F.A. Hayek’s Vision for Money: Economist

F.A. Hayek was a Nobel-prize winning economist. In the 1970s, in the middle of a punishing recession and inflationary period that lasted into the beginning Ronald Reagan’s presidency, Hayek proposed that the solution to government-caused inflation and its associated problems was to allow the issuance of private, irredeemable money to compete with fiat issued by governments in a book called “The Denationalisation of Money.” Decades before Bitcoin or anything like it had been conceived, at a time when even online checking would have seemed futuristic to everyday people, Hayek believed that private currency would encourage competition and that a variety of sound money options would arise as a result.

William J. Luther, the director of the American Institute for Economic Research’s Sound Money project, writes in a recent article that in many ways Bitcoin and the crypto market generally fulfill the vision that Hayek had. He notes that critics of the…