35 Cato J. 357 (2015)
Bitcoin Will Bite the Dust

handle is hein.journals/catoj35 and id is 382 raw text is: 












          BITCOIN WILL BITE THE DUST
       Kevin Dowd and Martin Hutchinson

   Bitcoin is the most radical innovation in the monetary space for a
very long time. It is an entirely private monetary system that runs
itself and does not depend on trust in any central authority to honor
its promises. Instead, it relies on trust in the Bitcoin community or
network that verifies transactions and maintains the integrity of the
system. This system of distributed trust creates bitcoins and produces
an automatic, tamper-proof bitcoin money supply process. ' As such,
it avoids the dangers of discretionary monetary policy-namely,
quantitative easing, manipulated interest rates, and the need to rely
on wise men or women to withstand political pressure or successfully
forecast the future. Indeed, under Bitcoin there is no monetary pol-
icy at all. There is just an automatic monetary rle dictated by the
Bitcoin protocol designed in 2009 by an anonymous programmer
using the alias Satoshi Nakamoto.



   Cato Joumal, Vol. 35, No. 2 (Spring/Summer 2015). Copyright  Cato Institute.
All rights reserved.
   Kevin Dowd is Professor of Finance and Economics at Durham University in the
United Kingdom and a partner at Cobden Partners. Martin Hutchinson is a journal-
ist and author of the Bear's Lair column (www.tbwns.com/category/the-bears -lair).
The authors thank Ferdinando Ametrano, Gavin Andresen, Raadhiyah Anees, Steve
Baker MP, Roger Brown, Dave Campbell, Akin Fernandez, Dominic Frisby, Jim
Harper, Doug Jackson, Gordon Kerr, Jim Rapp, Eric Sarnieski, Lawrence H. White
and Basil Zafiriou for much helpful feedback. We note that several of our readers
have expressed serious reservations about our analysis and conclusions. Any remain-
ing mistakes are the authors' own.


'By convention, Bitcoin with an upper case B refers to the Bitcoin protocol that
sends and receives payment information; and bitcoin with a lower case b refers
to the corresponding unit of money.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 2,700 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline with pricing starting as low as $29.95

Access to this content requires a subscription. Please visit the following page to request a quote or trial:

Already a HeinOnline Subscriber?