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13 - The Bitcoin or the Reality of a Waking Dream

Published online by Cambridge University Press:  26 February 2018

Jocelyn Pixley
Affiliation:
Macquarie University, Sydney
Helena Flam
Affiliation:
Universität Leipzig
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Summary

A potential logic of pure capital is given a thorough treatment in Amato’s debate about Bitcoin. Here too, Marxian and classic (Keynesian) liberal analyses are deployed in another (ugly) opposite. Amato offers an eye-opener on Bitcoin’s anarchic libertarian notion of a pure capital untouched by any economic activity whatever. In this utopia (dystopia) are no invigorating tensions between creditors and debtors, that chapters 4 and 5 recount negatively (warfare) or hopefully (household subsistence). Instead there is a permanent deflation aimed via keeping Bitcoin scarce –like the old gold standard that perennially favoured so-called creditors. The algorithm ‘running’ the show gives Bitcoin liberation from third parties (authorities) that try to control money creation. Bitcoin aims to refuse debt as the source of money issue, to make it a fixed commodity. But the temptation to hoard Bitcoin makes it volatile, unbalanced and dangerous. Third parties enable ‘a chain of signifiers’ that the algorithm abolishes – into Hayek’s notion of money as ‘absolute property’. Bitcoin is fully disembedded from lively social relations; it is a ‘heavy’ and anti-social currency, not the money as light as a mere intermediary.
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Chapter
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Publisher: Cambridge University Press
Print publication year: 2018

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References

Amato, M, Fantacci, L (2016), Per un pugno di bitcoin, Bocconi University PressGoogle Scholar
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Bank of England (2014b) ‘The economics of digital currencies’, Quarterly Bulletin, Q3, www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q3digitalcurrenciesbitcoin2.pdfGoogle Scholar
Haldane, A, Qvigstad, J (2014), ‘The evolution of central banks: a practitioner’s perspective’, www.norges-bank.no/pages/100044/14_2_Haldane_and_Qvigstad_28_June_2014.pdfGoogle Scholar
Keynes, J M (1971), A Tract on Monetary Reform (1923), in Collected Writings of John Maynard Keynes, Vol. IV, London: MacmillanGoogle Scholar
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Nakamoto, S (2008) ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, https://bitcoin.org/bitcoin.pdfGoogle Scholar
Ricks, M (2016), The Money Problem: Rethinking Financial Regulation, University of Chicago PressGoogle Scholar

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