Mr. Stolyarov offers economic thoughts as to the purchasing power of decentralized electronic currencies, such as Bitcoin, Litecoin, and Dogecoin.
When considering the real purchasing power of the new cryptocurrencies, we should be looking not at Bitcoin in isolation, but at the combined pool of all cryptocurrencies in existence. In a world of many cryptocurrencies and the possibility of the creation of new cryptocurrencies, a single Bitcoin will purchase less than it could have purchased in a world where Bitcoin was the only possible cryptocurrency.
References
- “Cryptocurrencies as a Single Pool of Wealth: Thoughts on the Purchasing Power of Decentralized Electronic Money” – Essay by G. Stolyarov II
- Donations to Mr. Stolyarov via The Rational Argumentator:
Bitcoin – 1J2W6fK4oSgd6s1jYr2qv5WL8rtXpGRXfP
Dogecoin – DCgcDZnTAhoPPkTtNGNrWwwxZ9t5etZqUs
- “2013: Year Of The Bitcoin” – Kitco News – Forbes Magazine – December 10, 2013
- “Bitcoin” – Wikipedia
- “Litecoin” – Wikipedia
- “Namecoin” – Wikipedia
- “Peercoin” – Wikipedia
- “Dogecoin” – Wikipedia
- “Tulip mania” – Wikipedia
- “Moore’s Law” – Wikipedia
- The Theory of Money and Credit (1912) – Ludwig von Mises
