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Bitcoin and its Foundation in Austrian Economics

The recently published book “The Bitcoin Standard” by economist Saifedean Ammous makes the case that bitcoin is rooted in the principles of Austrian economics. This view is shared by many bitcoin maximalists who prescribe to this economic school of thought.

How Does Bitcoin Fit into Austrian Economic Principles?

While Ammous stakes his case on bitcoin’s scarcity, there are many reasons that make the cryptocurrency compliant with the Austrian school of thinking. An essential principle within this field is the notion of personal freedom. Individuals are to have control over their means of production, property rights, and to their money.

This is in line with what can be witnessed within the Bitcoin network. Max Hillebrand explains in an interview with the World Crypto Network:

“In bitcoin, I run my own full node, I keep my own keys. Therefore, I set my own rules in my money, and if I want to change those rules, then I can do it because I have full control over it. Then further I verify each and every transaction in the network if it plays by my rules. So I am also the judge in this system. But not only do I verify if they are true if they are false I ignore them, I block them. I’m pretty much judge, jury, and executioner. I am the king of my money, the sovereign of my money, and no one can take that away from me.”

Additionally, bitcoin is attractive to Austrian economists as it exists outside of the political landscape making it impervious to any attempts at centralized control. This feature was perhaps motivation for bitcoin’s pseudonymous creator Satoshi Nakamoto, especially considering the message contained in the genesis block, in which he referenced the bailout given to the banks following the economic crisis.

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