"On the origins of Bitcoin," my new work on Bitcoin and monetary theory

Linked below is a new work I have just written on Bitcoin and monetary theory. It addresses in a more systematic way than I have before issues relating to the interpretation of the origins of Bitcoin in terms of the monetary regression theorem and the application of some central integral-theory principles to monetary theory.

Bitcoin has arisen as an entirely new and unexpected market phenomenon deserving of fresh treatments. Its arrival also provides opportunities to dig deeper into theoretical fundamentals themselves. While this work can be viewed as part of a much larger project in progress, I also have the sense that it can stand alone.

The title, On the origins of Bitcoin: Stages of monetary evolution, acknowledges the inspiration of the classic 1892 work, On the origins of money by Carl Menger, a landmark in the development of the market-evolution account of the origins of media of exchange and money. This “Austrian school” or “Vienna school” approach contrasts with what I dub the state-creatationism theory of the origin of money. It also contrasts with the tempting but unsatisfactory view that money is merely a “social illusion.”

In a nod to the software world out of which Bitcoin has arisen, I call it a first public beta, meaning that, while refinements are always possible and likely, I think the central intended functionality has been implemented. Revised versions and formats may follow.


Link updated from 23.10.2103 version to revised and expanded 03.11.2013 version

Download PDF:On the origins of Bitcoin: Stages of monetary evolution (03.11.2013)