Lecture

Bitcoin and the Austrian school relate to each other in many ways. Watch this lecture as we discuss the characteristics of Bitcoin, especially its fixed and predictable supply. The now famous stock-to-flow model, as first described by PlanB, seems to be unexplainably accurate. Could it be that Bitcoin introduces the first constant in economic calculation?

Topics covered include:

• Money emergence on the free market
• Government-issued money and opportunity cost
• Bitcoin's stock-to-flow ratio as an economic constant

Key points:

• Bitcoin's supply is fixed and predictable
• Bitcoin is an example of how money can emerge on the free market
• The S2F model, based on Bitcoin's fundamentals, could be the first example of accurate economic modeling
• This predictability causes less uncertainty about the future and enables people to lower their time preference