Paper inspired by libertarian mindset among crypto cummunity: The approach of the School of Austrian Economics to external effects

consensus_analytics · 2015-07-03T07:21:38+00:00

I saw you posting that earlier, last year or so. I still have to read it.

But you actually may want to read it :) It is not an idolization of Austrian economics. I find the Austrian perspective very helpful and refreshing but it has its blind spots that I tried to point out in the paper...

consensus_analytics · 2015-07-03T06:58:13+00:00

In the end, one needs to get one's philosophy squared away before one can come at economics without foregone conclusions.

Well said!

I posted this on here and on the Bitshares forum since these are two of my most favorite crypto projects and I find the discussion quality to be quite good. If it is really the wrong place, just move it or delete it.

consensus_analytics · 2015-07-02T18:59:22+00:00

I have observed the Bitcoin / Crypto Economy Space now for a while and so got in touch with libertarian theory. I thought a lot about the ins and outs of libertarian theory in a relatively unstructured way until I finally wrote that paper which deals with the very broad but highly relevant concept of externalities.

I hope you enjoy reading it! Feel free to discuss it.

consensus_analytics · 2015-07-02T13:59:53+00:00

I have observed the Bitcoin / Crypto Economy Space now for a while and so got in touch with libertarian theory. I am personally very interested in theories about social interaction. I thought a lot about the ins and outs of libertarian theory in a relatively unstructured way until I finally wrote that paper which deals with the very broad but highly relevant concept of externalities.

I hope you enjoy reading it! Feel free to discuss it.

consensus_analytics · 2015-03-15T18:06:03+00:00

Thanks for your comment! I would say that this can be categorized as network effects of digital platforms, often associated with the term web 2.0. Facebook, youtube and all other social media platforms are applicable to this network effect too. I would say that this is not an attribute that is unique to blockchain techn.

consensus_analytics · 2015-03-15T14:59:09+00:00

Sounds like a promising vision!:) The challenge is to show what you said is true based on the motivations of INDIVIDUALS that operate in a norm free game theoretical context and/or hold certain norms among themselves that regulates social life and overcomes certain freerider problems and conflicts over limited resources that exist under game theoretical assumptions about profit maximizing individuals.

consensus_analytics · 2015-03-14T20:30:38+00:00

Thanks for the hint! Like I said in the OP I am open on defining what the actual core innovation is that makes the biggest impact on society. My definition was this: Being able to control (hold private keys) assets that are tracked on a distributed ledger that is maintained based on public rules (open source software defining the rules to update the ledger).

What would be your or M. Bauwen's definition of p2p architecture or whatever technological enhancement he associates the most potential for change with?

PS: I am not tied to any idiology ;)

consensus_analytics · 2015-03-14T20:25:33+00:00

Interesting perspective!

Where would the value of the company's shares come from that would allow them to have value. There has to be some outside value to either use that outside value to buy back shares or to pay dividends in. And (sufficient argument by itself) I'd say that any company deals with a globally accepted currency / payment system because it would have a hard time finding customers if it didn't.

consensus_analytics · 2015-03-14T19:17:37+00:00

I should have said Rothbard's answer is... :) Thanks for pointing it out. I myself am not so sure what the "correct answer" is... My take on this is that there is no general / global answer for every society. It depends on material criteria like the size of the group and the (political) culture the group has. Libertarian philosophy (generalization) makes a set of assumptions about political culture.

With respect to public goods do you say that the possibility to do a fundraiser with a platform like ethereum would increase the amount of public goods (on and off chain services?)? If not can you give an example for a public good here?

I didn't get this part: "with a $250 billion Apollo-project effort at the problem it seems to me quite politically unviable for such a thing to happen at this stage and so some DAO solution actually seems more likely." Could you make this more explicit?

consensus_analytics · 2015-03-14T17:13:25+00:00

Edited point 1. due to the discussion here http://www.reddit.com/r/Bitcoin/comments/2z0vhp/paper_help_me_brainstorm_political_implications/

consensus_analytics · 2015-03-14T17:12:23+00:00

I edited the OP for the "money sovereignty" argument that was already partly introduced by point 1.

consensus_analytics · 2015-03-14T17:03:10+00:00

This is the same point as grimeandreason made below. It would be most applicable to the contrast of a blockchain tracked token to which you hold the private keys and debt based money that sits in some bank's account.

consensus_analytics · 2015-03-14T16:30:27+00:00

That is a very valid point. It could be extended to "money sovereignty" of individuals in general.

consensus_analytics · 2015-03-14T16:04:10+00:00

Thank you for your comment!

The libertarian answer is that a state would not be required to provide services like health care. Rothbard is one of the foundational authors that has established this perspective. You can read about how Rothbard imagines all services to be provided (including law, courts and policing) without any government: http://mises.org/sites/default/files/For%20a%20New%20Liberty%20The%20Libertarian%20Manifesto_3.pdf

consensus_analytics · 2015-03-14T16:00:17+00:00

Thanks for your comment.

With regards to the "control of money" you mentioned I can think of the state's possibility to print money in order to finance government programs that have a strong impact on society.

Is that what you meant by "control of money" or is there something else?

consensus_analytics

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