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Technically, Austrians don't equate "no central banking" with "commodity-based currency". They simply point to the fact that without a Socialist central bank di
by noclique 14y ago
Technically, Austrians don't equate "no central banking" with "commodity-based currency". They simply point to the fact that without a Socialist central bank dictating by fiat what currency to use, the free market would simply decide. Austrians point to the historical record that shows precious metals filling this role in the majority of cases where the market was left alone. However Bitcoin seems to be competing now as-well in certain ways which is very exciting.
I suggest you watch http://www.youtube.com/watch?v=TxcjT8T3EGU http://www.youtube.com/watch?v=TxcjT8T3EGU on trade cycles before the Fed.
- 13b9f227ecf0 14y agoIsn't it more accurate to say that the state mandates the currency by requiring it in payment of taxes? If I start paying people in old Deutschmark notes or silver bullion it's not the Fed that will come at me, it's the IRS.
- noclique 14y agoYeah you're right. I'm fairly certain also that it's legal for private businesses / individuals to accept and sell other forms of money. Only when it comes to tax payment must you use the State issued currency or suffer repercussions. However we're reminded by Gresham's law that money overvalued by government will tend to drive out money that is not.
- aidenn0 14y agoAt least in the US, you are also required to take dollars for discharging debt; you could refuse bitcoin if you wanted to, but not cash.