By Cory
Divorce of Crypto-Austrians and Crypto-Keynesians
I know how much debate there has been regarding crytocurrencies on this site so when I came across this I thought I should re-post and see what everyone thinks. This is not about are cryptos in a bubble but more about the future in terms of scale for economies and investors. As the title says the recent Segwit2X update is taking Bitcoin in a different direction than intended by its founder. Read below to find out more.
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The scaling battle that’s been raging in the Bitcoin ecosystem the past 3 years is finally over. The entire Bitcoin network has spoken and it has spoken for … what exactly?
There are lots of articles that will chronicle for you what’s happened in the past few months and years. If you aren’t familiar with the story so far, please go read this. In this article, I’m going to try to interpret what this whole drama means.
The Great Divorce
The final nail in the coffin of a united community was the abandonment of the 2x hard fork earlier this week, but to be truthful, the Bitcoin community has been divided for a long time.
The past few years has seen the development of separate subreddits, separate forums and now, separate blockchains, but it wasn’t always this way. Back in 2013, there was a single community united against fiat, excited at the prospect of new and exciting features that would take Bitcoin to the next level. Yet here we are 4 years later post-divorce, wondering what happened.
At least nominally, the issue at hand is a block size increase. Specifically, a hard fork to larger blocks that would enable a larger degree of on-chain scaling. In the grand scheme of things, this doesn’t look like a big issue, so the question we have to ask ourselves is, how did this issue become grounds for divorce? What is the real problem here?
Economics
Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.
This is a quote from John Keynes, an economist of some renown. I bring up this quote because I believe it to be relevant to the scaling debate. The real conflict over the past several years wasn’t so much about the technical specifics, but about economics.
Before I go on, however, I want to introduce you to a couple of different economic theories. The first is Keynesian, which is named after the economist quoted above. The second is Austrian, which is named after some Austrian economists from the last century.
Keynesian economics looks at the economy at the macro level and …read more
Source:: The Korelin Economics Report
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