In 1976, Nobel laureate Friedrich Hayek proposed that money should be denationalized, such that privately issued moneys would compete over their relative ability to retain stable value. In 1978 he revisited this concept, adjusted a few of his predictions about the ensuing dynamic (placing more emphasis on the role of network effects), and published his findings in "Denationalisation of Money: The Argument Refined". I will not recount the argument here, since the book does so well enough.
Perhaps history will one day find irreparable fault in Hayek's thesis, who knows. But even if so, the idea was no more foolish than would intrigue an economist celebrated for his insight into money.
If Hayek erred, I have yet to read an analysis which shows me how. Cryptocurrency skeptics could improve their credibility if they first acknowledge the plausibility of the thesis, and then proceed to counter rather than duck the logic behind it.
(Updated 12/8/2017 in response to a private email asking for clarification. I still intend to create a better description and analysis, with...
Asymmetric cryptography is a slightly dodgy proposition today, since all known asymmetric cryptosystems require introduction of at least one...
In 1976, Nobel laureate Friedrich Hayek proposed that money should be denationalized, such that privately issued moneys would compete over t...