Revenge of the Austrians

Revenge of the Austrians

People often speak of Bitcoin having its roots in the cypher punk community, but I view Bitcoin has having multiple roots that only became a viable currency when these roots merged. The technical contributions of the cypher punks are tremendous, but perhaps even more significant is Bitcoin’s roots in Austrian monetary economics.

Throughout the history of humanity, there has been tremendous struggle over money with government consistently growing to take control of the money supply–and it’s creation. This happens today in the form of Keynesian central banks expanding the money supply to finance the endless desire of government to spend and consume beyond what it would be able to without the ability to create new currency units at negligible cost. But this Keynesian practice was common throughout history as well, of course it was known by a [different names then](https://en.wikipedia.org/wiki/Methods_of_coin_debasement), but it was Keynesianism all the same.

Wherever productive and free people managed to save any significant wealth for the future, government would soon show up to start eating it away with Keynesian debasement, like rats showing up to help themselves to some cheese someone else labored to create.

There was of course people who rejected the Keynesian theft-apologist ideology. The Austrians called out the Keynesian governmental theft and exposed the harm a society suffers from allowing these intrusive government rats to consume whatever stored wealth they please, but things did not play out well for the Austrians. Any time there was an attempt by the Austrians to create a money that was immune from Keynesian appropriation government would [promptly stamp out](https://en.wikipedia.org/wiki/Executive_Order_6102) this monetary competitor and [often the lives of whatever Austrians were associated with it’s enterprise](https://en.wikipedia.org/wiki/Liberty_dollar_(private_currency)). Keynesian money does not fair well in the marketplace with competitions so governments that rely on Keynesian money for for their existence cannot allow such competition.

And so whenever Austrians attempted to challenge Keynesian monetary supremacy they were completely and utterly annihilated. Keynesian money had allowed government to grow in size and power into something analogous to a Death Star–a monstrosity of war and death with limitless capacity for destruction. Any attempt at a direct head-on assault or open challenge is doomed to certain failure. But just as a Death Star is designed around and completely dependent on a core, so to is government designed around completely dependent on a Keynesian money core from which it draws all of its power to fund and sustain itself. There is no Death Star without the Keynesian core. And all of the Austrians efforts to take out the core had failed. But then someone wrote and released a tiny piece of code–an imperceptible threat at first, but a threat in the form of a tiny new money that challenges the Keynesian monopoly. An Austrian money that cannot be killed.

This Austrian money has been steadily and consistently growing for the past 11 years and yet the Keynesians seem to be woefully unaware of their coming demise. I recall the arrogant Keynesian claim that [We’re all Keynesians now](https://en.wikipedia.org/wiki/We_are_all_Keynesians_now) after the Austrians were wiped out in the realm of mainstream economic thought, and it is true we were all Keynesians because we had no choice but to use Keynesian money.

But now that monetary monopoly has a challenger to its global supremacy, and it is one that is immune to the massive government power to target single points of failure. You Keynesians are *finished*; you were finished in 2009, you just haven’t realized it yet. The Austrians will have their revenge and the world will have a money that is free from surreptitious Keynesian theft.



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