A Beginners Guide to BITCOIN AND AUSTRIAN ECONOMICS

In 1976, Nobel Prize Laureate Friedrich August von Hayek called for the abolishment of the state monopoly on money and the introduction of freely competing currencies. Few people could imagine such a free market of money at the time. Today the denationalization of money is in full swing: digital currencies like Bitcoin are fully independent of banks and governments. This book explains the phenomenon of decentralized, stateless money in an easily understandable and entertaining way. It also provides a basic insight into the Austrian School of Economics. The Austrian School's most prominent masterminds, Ludwig von Mises, Friedrich August von Hayek and Murry N. Rothbard, have explained why we must overcome our present debt-based monetary system, which widens the gap between the rich and the poor. Bitcoin is the world's first global payment system that is open to anyone on this planet with Internet access. Payments are cheap, fast and cannot be blocked. With interviews of Bitcoin experts Roger Ver - Stephanie Murphy - Moran Shaked - Eddy Travia - Julia Touranski - Marek Palatinus - David Johnston - Susanne Tarkowski Tempelhof - Satoshi Nakamoto.

Aaron Koenig has produced many promotional films for Bitcoin startups. He organizes Bitcoin events and consults companies in using Blockchain technology. Aaron studied communication and marketing and has been working in the creative Internet industry since 1994.

Auteur
Aaron Koenig has produced many promotional films for Bitcoin startups. He organizes Bitcoin events and consults companies in using Blockchain technology. Aaron studied communication and marketing and has been working in the creative Internet industry since 1994.

Échantillon de lecture

1. La Revolución Bitcoinista

Bitcoin in Argentina

" Cambio, cambio, cambio " - you hear it all over the pedestrian area of central Buenos Aires, where moneychangers stand at every corner. Buying dollars, euros and other foreign currencies is strictly regulated in Argentina. If Argentinians want to officially change pesos into dollars through their bank, they need to prove that they intend to travel abroad and submit their tax return before completing the exchange. Even after submitting proof, they are only entitled to limited amounts of foreign currencies. As a result, the black market for dollars and euros is flourishing.

Bitcoin is popular in Argentina

Argentinians don't call this free market black , but blue , which is Argentina's national color. Although exchanging dollars on the free market is officially illegal, Argentinians do it anyway. The Blue Dollar's exchange rate is posted across websites and discussed in the finance pages of major newspapers.

Inflation and Frozen Accounts

Argentinians have a variety of reasons for their distrustfulness of the ever-devaluing peso, in their government, and in banks. To save money, Argentinians prefer to buy dollars on the "blue market" and hide them in their house - it would be unthinkable to leave large amounts of money in a bank account.

The memory of the 2001 Corralito ("the little corral") is still fresh. During the Corralito , bank accounts were frozen for nearly a year and only small amounts of money could be withdrawn. Then, the peso was massively devalued, and as a result people lost significant portions of their personal savings. Similar measurements of capital control were applied in Cyprus 2013 and in Greece 2015. But while Europeans may still consider this to be out-of-the-ordinary, Argentinians have come to expect such behavior from their banks and governments. They have suffered repeatedly through hyperinflation, government defaults and currency devaluations.

In the late 19th and early 20th century, Argentina was one of the richest countries in the world, blessed with natural resources, fertile soils and a rapidly growing immigrant workforce. "Rico como un Argentino" ("rich as an Argentinian") was a common Spanish expression. But for decades the country was ruled by socialist politicians who ruthlessly tampered with the economy, and as history is teaching us again and again, even a naturally rich economy can be run down by socialist experiments.

It is no coincidence that the Bitcoin scene in Argentina is one of the most vibrant in the world. Money that cannot be manipulated by politicians and which works without banks - you don't need to explain to an Argentinian why that is a good thing!

The Espacio Bitcoin

The Espacio Bitcoin in the center of Buenos Aires

Not far from the "blue money changers," in a major location of central Buenos Aires lies a four story building with 500 square meters of rentable space: the Espacio Bitcoin . Many Bitcoin startups have their offices here, and many meetups and public lectures on digital currencies take place in its meeting hall. On the ground floor there is a pirate-themed restaurant where waiters wear red bandanas and black vests, and where you can pay for your meal in Bitcoin.

"In the US, the restaurant owner would probably change his Bitcoins into dollars right away," says Rodolfo Andragnes, one of the founders of Espacio Bitcoin . "But here, he prefers to keep them. The Bitcoin price may go up and down, but with the peso you can be sure it will only lose value."

Paying with Bitcoin at Puerto Pirata

Rodolfo scans a QR code on the screen of the restaurant's POS. One more click and the Bitcoins for a steak with french fries are on their way.

The founders of Bitcoin Argentina