Previously
In the previous article, here , we revisited our initial three questions which inquired about the means by which governments act far beyond their sole legitimate scope of protecting individual liberties.
Now, let’s take a look at three major factors that we can use to predict with reasonable accuracy the effects of bitcoin on the world – cypherpunks, Austrian School economists, and hard money in history.
Allegorical Anarchists
In order to forecast properly how bitcoin will affect the world, I think it is necessary to understand the intent of those who had a part in its creation, directly and indirectly.
There is a serious and notable (though mostly unheard of) movement called “cypherpunk” that has been around for almost as long as the internet itself. [1] In short, a cypherpunk is a devout believer of and staunch advocate for individual liberty by way of decentralization of power for the purpose of moving away from highly centralized power. One of the primary means by which cypherpunks implement this movement is software built on cryptography [2] which is the study and application of math and computer science to keep communications private and secure.
I recommend everyone take 5 minutes to read “The Crypto Anarchist Manifesto” here. For those who want the TL/DR (“too long, didn’t read“):
“We no longer need the coercive force of government to defend our
rights (since the state always tilts towards tyranny), nor do we ask
for permission to do so. Instead, we will do it ourselves and,
in the course of doing so, enable everyone to protect their
rights, independent of the intentions and negligence of the state.“
Author’s Note: This is my summary and could be wrong. Any errors of interpretation are mine and mine alone and should not be attributed to anyone else.
As cypherpunks will usually point out, the state always works slowly and under the radar on its quest for power. The cypherpunk movement takes the same tack; cypherpunks also work without fanfare, preferring to remain behind the scenes so as not to draw attention to themselves nor their efforts.
I think all of us can take a page out of the playbooks of both the state and the cypherpunks; we will work slowly, surreptitiously, and steadily to achieve our aim of fostering individual liberty.
Predictors Of Prosperity, Protectors Of Private Property
We have two very good examples of cogent and respected economists who predicted the advent of bitcoin (without knowing exactly what the name would be nor how it would work).
One of those men was Frederick Hayek. I am a huge fan of Mr. Hayek as he is considered one of the preeminent Austrian School economists of the 20th century. [3] In videos, here and here, he predicted the advent of bitcoin in 1984 with this quote:
“I don’t believe we shall ever have a good money again before
we take the thing out of the hands of government,
that is, we can’t take it violently out of the hands of
government, all we can do is by some sly roundabout
way introduce something that they can’t stop.“
F.A. Hayek, 1984
Bitcoin is that “something” that Hayek, Ludwig von Mises, Murray Rothbard, and a legion of other Austrian economists have been waiting for (and, in some instances, actually predicted).
Fifteen years later, Milton Friedman predicted bitcoin in 1999. You can see the video here and read about it here. [6]
Much like the cypherpunks of today, Friedman and the Austrian economists understood keenly the need to work surreptitiously, behind the scenes, in order to implement a form of hard money that would be completely separate from the state.
The Ultimate Effects Of A Hard Money Standard Throughout History
It’s OK for use to be completely honest and admit that we have never seen the world on a “bitcoin standard”. [7] Thus, unlike gold, we do not have any direct experience with nor history of bitcoin as the world’s reserve currency. But, we have seen periods in history when we have come close to achieving this ideal state.
Thus, to forecast with reasonable accuracy, the best that we can do is use both first principles of human action as well as human history for applying known patterns. These first principles can be employed to forecast what it would take to adopt a global bitcoin standard and to consider what happens when we have a hard money standard with the world’s first true form of money. We can look back through history at times when we had hard money standards and the resulting net effects on those societies.
Historical Note: In a previous article, here, we covered at a high level instances throughout history where countries employed a hard money standard. As a consequence of using dependable money, they thrived and became the preeminent powers of their time.
Fortunately for us, we have sufficient examples in human history where we can observe what happened on a hard money standard and the fundamental reasons why a hard money standard always works so well:
- The Ancient Roman Empire, circa 300 BC to 337 CE [8]
- The Byzantine Empire, 395 CE to 1453 CE [9]
- Renaissance Europe, circa 12th century and circa 12th century CE to 16th century CE [10] and the [First] Age Of Enlightenment, circa late 17th century CE to early 19th century CE [11] [12] [13]
- The global Gold Standard, “La Belle Epoque“, 1814 CE – 1914 CE [14]
Each of these major eras (and their resulting accomplishments) could only happen because of the hard money standards which were adopted during those periods.
Their respective hard money standards (along with the other three civilizational pillars of the rule of law, written language, and civics) are what enabled and promoted savings, risk-taking, investing, innovation, technological change, and ubiquitous prosperity. [15]
Conversely, we also can see the net societal and cultural effects when those states transitioned from a hard money standard to a soft money standard. They stifled economic prosperity, could not defend their borders and citizens from outside aggressors, grew their bureaucracies to parasitic levels, subjugated the citizenry, and eventually collapsed. Abandoning the very thing that brought about societal success in the first place (a form of money which naturally and passively constrained the powers of the government), is what typically causes a country’s ultimate demise.
As you have probably surmised by what has been presented in this entire series, throughout history, we have seen the effects of good money and bad money on cultures and countries. They are the opposite yet equally powerful forces and effects:
- Fiat currency is a de-civilizing force because it forces us to think only of today and punishes us for saving for the future.
- “I know that this dollar will be worth less tomorrow than today. So, I should spend it now instead of holding it to invest for the future.“
- Hard money is a civilizing force because it motivates and rewards us to think of and invest in the future by delaying our immediate gratification of today.
- “I know this bitcoin will be worth more tomorrow than today. So, I should save it for the future rather than spend it now.“
From this, we have two chief revelations:
- The four pillars of civilization (hard money, written language, the rule of law, and civics) are all psycho-technologies.
- Using a hard money standard, one of the four pillars, is what enables the other three pillars to take hold, stabilize, and propel a society into equity, durability, prosperity, and longevity.
What an eye opener! Merely choosing the form of money which is fair and impartial to all participants and not subject to the whims of a select few is the deciding factor for societal success!
Next Steps
In the next article, here, we will tie all of this together and discuss what a “bitcoin standard” is, how that eventually leads to a separation of money and state, and will promote individual liberty on a scale never before experienced.
The Learning Never Stops!
If you want to continue your journey of learning about all things bitcoin with knowledgeable and helpful people who love to be of service to others, I highly recommend my bitcoin MeetUp, “Bitcoin, Huntsville, Crypto, & Coffee” which you can find here . We meet two times every month online to discuss bitcoin and its impact on the world. You’ll be able to talk directly with others who are also on their personal bitcoin journey and ask them engaging questions. We’re not selling anything. The only thing that we ask of you is to come to the table in good faith and be willing to DYOR – Do Your Own Research. We love newbies and the energy they bring!
Donations
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End Notes, References, & Citations
[1] Cypherpunk
Brave search engine summary “cypherpunk summary“
“Cypherpunk Summary
Cypherpunks are individuals and organizations who use computer code and cryptography technology to preserve privacy and anonymity. The movement originated in the late 1980s and gained traction with the establishment of the ‘Cypherpunks‘ electronic mailing list in 1992, where activists, technologists, and cryptographers discussed strategies to enhance individual privacy and resist state or corporate surveillance. The cypherpunk movement is deeply libertarian, advocating for decentralization, individual autonomy, and freedom from centralized authority. They believe privacy is necessary for an open society in the electronic age and that encryption is a private act that cannot be destroyed or shut down by regulations.
The cypherpunk movement has contributed to the development of technologies that have reshaped global finance, communication, and privacy practices, such as Bitcoin and other cryptocurrencies, which embody cypherpunk ideals of decentralized and censorship-resistant money.
Cypherpunks have also created systems that champion anonymity by using cryptography and decentralized technology, including the Pretty Good Privacy (PGP) program for secure data communication, the Tor project for private web browsing, and Hashcash, an anonymous transaction system used to limit spam emails and cyberattacks.
- Philip Zimmermann: Creator of Pretty Good Privacy (PGP), a widely used email encryption software.
- Julian Assange: Founder of WikiLeaks, a media organization known for publishing classified government documents.
- Nicholas Szabo: Computer scientist credited with introducing the concept of smart contracts, widely used in decentralized finance (DeFi) applications and Web3 programs.
- Satoshi Nakamoto: Pseudonymous founder of Bitcoin, the most valuable cryptocurrency network in the world.
- Zooko Wilcox: Co-founder of Zcash, a privacy-preserving cryptocurrency.
- Adam Back: British cryptographer who created Hashcash, used in Bitcoin mining.
- Fiatjaf: Pseudonymous founder of Nostr, an open protocol for building censorship-resistant social media applications.
The cypherpunk movement has had a lasting impact on debates around digital rights, surveillance, and personal freedoms in the 21st century.“
“Cypherpunk
A cypherpunk is one who advocates the widespread use of strong cryptography and privacy-enhancing technologies as a means of effecting social and political change. The cypherpunk movement originated in the late 1980s and gained traction with the establishment of the ‘Cypherpunks‘ electronic mailing list in 1992, where informal groups of activists, technologists, and cryptographers discussed strategies to enhance individual privacy and resist state or corporate surveillance. Deeply libertarian in philosophy, the movement is rooted in principles of decentralization, individual autonomy, and freedom from centralized authority. Its influence on society extends to the development of technologies that have reshaped global finance, communication, and privacy practices, such as the creation of Bitcoin and other cryptocurrencies, which embody cypherpunk ideals of decentralized and censorship-resistant money.
The movement has also contributed to the mainstreaming of encryption in everyday technologies, such as secure messaging apps and privacy-focused web browsers. The cypherpunk ethos has had a lasting impact on debates around digital rights, surveillance, and personal freedoms in the 21st century. The movement has been active since at least 1990 and continues to inspire initiatives aimed at fostering a more private and secure digital world.“
“A Cypherpunk’s Manifesto
[Excerpt] “Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something one doesn’t want the whole world to know, but a secret matter is something one doesn’t want anybody to know. Privacy is the power to selectively reveal oneself to the world.“
[2] Cryptography
Brave search engine summary “What is cryptography“
“What is Cryptography
Cryptography is the practice of securing communication in the presence of outside third parties, protecting sensitive information from unauthorized access by transforming data into an unreadable form without an encryption key.
It ensures confidentiality, integrity, and authenticity of data, making it a fundamental component of modern information security. Cryptography involves using algorithms, hashes, and signatures to encrypt and decrypt data, ensuring that only authorized individuals can access and read encrypted information.“
“Cryptography
Cryptography, or cryptology (from Ancient Greek: κρυπτός, romanized: kryptós “hidden, secret”; and γράφειν graphein, “to write”, or -λογία -logia, “study”, respectively), is the practice and study of techniques for secure communication in the presence of adversarial behavior. More generally, cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages. Modern cryptography exists at the intersection of the disciplines of mathematics, computer science, information security, electrical engineering, digital signal processing, physics, and others. Core concepts related to information security (data confidentiality, data integrity, authentication, and non-repudiation) are also central to cryptography. Practical applications of cryptography include electronic commerce, chip-based payment cards, digital currencies, computer passwords, and military communications.“
“What is Cryptography?
Cryptography is the practice of developing and using coded algorithms to protect and obscure transmitted information so that it may only be read by those with the permission and ability to decrypt it. Put differently, cryptography obscures communications so that unauthorized parties are unable to access them.“
[3] The Austrian School of economics
Brave search engine summary “Chicago school of economics versus Austrian school of economics“
“Chicago vs Austrian Economics
The Chicago School of Economics and the Austrian School of Economics are two prominent free-market schools of thought with distinct methodological and theoretical differences.
Chicago School of Economics: This school, associated with the University of Chicago, emphasizes empirical analysis, mathematical modeling, and the role of market mechanisms. Key figures include Milton Friedman and George Stigler. The Chicago School generally supports the use of monetary policy to stabilize the economy and often advocates for a central bank to manage the money supply. They believe in the efficiency of markets and the rationality of economic actors, often subscribing to the efficient markets hypothesis (EMH). The Chicago School has been influential in policy, particularly in areas like deregulation and privatization.
Austrian School of Economics: Originating in Vienna, the Austrian School emphasizes methodological individualism, the subjective theory of value, and a more qualitative approach to economics. Key figures include Ludwig von Mises, Friedrich Hayek, and Murray Rothbard. Austrians reject the use of mathematical models and econometrics, preferring verbal and logical reasoning. They focus on the role of entrepreneurship, the structure of capital, and the business cycle, often attributing economic downturns to government intervention, particularly in monetary policy. Austrians generally advocate for the abolition of central banks and a return to a gold standard or free banking.“
[6] Milton Friedman and Chicago School of economics
Milton Friedman was not an Austrian School economist (he would be considered “Chicago School” [3]), but was still a staunch proponent of individual liberty and limited government. You can read about his thoughts on individual liberty in his seminal book, “Capitalism & Freedom“
[7] Hyper-bitcoinization
In the bitcoin space, the state of bitcoin as the world’s monetary standard is called “hyper-bitcoinization“.
[8] The Ancient Roman Empire’s money
Brave search engine summary “ancient roman empire money“
“Ancient Roman Empire Money
Ancient Roman money underwent significant changes throughout the empire’s history. Initially, the Roman economy used bronze weights called aes rude as a form of currency, which could be used both as coinage and melted down for tools and objects.
Coinage proper was introduced around 300 BC, with the first coins produced in Italy in the late 4th century BC. The early Roman currency consisted of gold, silver, bronze, orichalcum, and copper coins.
The aureus was the basic gold monetary unit of ancient Rome, equivalent to 25 silver denarii, and a denarius was worth 10 bronze asses.
The denarius was a silver coin that became a significant currency in the Roman world, and its influence can be seen in the modern words for money in many languages, such as “denaro” in Italian and “dinero” in Spanish.
During the Roman Empire, the image of the emperor became a central feature on coins, serving as propaganda and a means of disseminating the emperor’s image throughout the empire.
This practice continued from the time of Julius Caesar and was maintained even after his assassination.
In the late Empire, the aureus was replaced by the solidus, a gold coin introduced by Constantine in 337 AD.
The solidus was valued at 275,000 denarii initially, but by 356 AD, its value had increased to 4,600,000 denarii, reflecting the rampant inflation of the period.
Roman currency was widely used throughout western Eurasia and northern Africa from classical times into the Middle Ages, and it served as a model for the currencies of the Muslim caliphates and European states during the Middle Ages and the Modern Era.
- Aureus: Basic gold monetary unit of ancient Rome, equivalent to 25 silver denarii.
- Denarius: Silver coin that became a significant currency in the Roman world, influencing modern words for money in many languages.
- Solidus: Gold coin introduced by Constantine in 337 AD, replacing the aureus.
The debasement of Roman currency, particularly in silver and gold content, was a long-term issue that began as the empire stopped expanding and faced economic challenges.
This debasement was gradual and eventually led to the need for price controls under Emperor Diocletian, who ruled from 284 to 305 AD.“
“History of Hard Money: The Denarius and the Fall of Rome
Money and the Fall of Rome
If ever there was an unbreakable civilization, the Romans held the title. Roman armies conquered 5 million square kilometers of territory and 20% of the earth’s population; Roman roads connected trade routes across Europe, Africa, and Asia; Roman art, literature, and philosophy layed the groundwork for modern Western culture.
And yet, Rome fell apart. Historians have debated the causes of Rome’s collapse for centuries, pointing to religious turmoil, erosion of traditional Roman values, incursions by Germanic tribes, and political corruption. However, at the heart of Rome’s decline lies a singular, pervasive factor: its monetary system.“
Brave search engine summary “ancient roman empire hard money standard“
“Roman Empire Hard Money
The ancient Roman Empire initially adopted a hard money standard, primarily using gold and silver coins. The denarius, a silver coin, was introduced around 211 BC and became the dominant monetary unit, with a purity of 95% and a weight of 4.5 grams. This standard was crucial for the economic stability of the Roman Empire during its peak. However, over time, the purity of the denarius was gradually reduced, leading to economic instability and inflation. By the end of the Roman Empire, the silver content of the denarius had dropped to just 2%.
Emperor Constantine restored some stability to the monetary system in the 4th century by introducing the solidus, a gold coin with a consistent precious metal content of 4.55 grams. This coin was used in the Byzantine Empire until the 10th century, long after the fall of Rome in the West.
The use of hard money in Rome was significant because it was difficult to produce and inflate, which helped maintain economic stability. However, the gradual debasement of coins over centuries contributed to the economic and political decline of the Roman Empire.
The Roman Empire’s monetary system also included bronze and copper coins, such as the sestertius and the ‘as’, which were used for smaller transactions. The aureus, a gold coin, was another important part of the Roman currency system, containing roughly twice the weight of precious metal as the denarius.
Throughout the Empire’s history, the use of hard money was crucial for economic stability, but the eventual debasement of coins led to inflation and economic turmoil, contributing to the fall of the Roman Empire.“
[9] Byzantium and the Byzantine Empire
Brave search engine summary “How long did the Byzantine empire last“
“Byzantine Empire Duration
The Byzantine Empire lasted for approximately 1,098 years, from 395 to 1453. It began as the eastern half of the Roman Empire after its division in 395 and continued to exist even after the fall of the Western Roman Empire in 476. The empire finally fell to the Ottoman Turks in 1453 when Constantinople was captured.“
Brave search engine summary “What money did the byzantine empire use“
“Byzantine Empire Currency
The Byzantine Empire used mainly gold solidi and hyperpyra, along with a variety of bronze coins. The solidus, also known as the nomisma, was the primary gold coin and was renowned for its purity and stability. It was the preferred coin for international trade and was in circulation for over 700 years.
Throughout its history, the Byzantine Empire also issued silver and copper coins. Silver coins included the hexagramma and the miliaresion, while bronze coins were initially known as the nummus and later as the follis.
The Byzantine economy was self-sufficient and thrived due to the use of these coins, which facilitated trade and taxation.“
Brave search engine summary “Byzantium and the Bezant“
“Byzantium and the Bezant
“Byzantium, the ancient Greek city that later became Constantinople and is now Istanbul, was the capital of the Byzantine Empire and the source of the gold coin known as the bezant. The term bezant comes from the Greek name Byzantion, which was the ancient name of Constantinople. In Western Europe, the gold coins produced by the Byzantine Empire were commonly called bezants, derived from Byzantium.
The Byzantine solidus, also known as the nomisma, was the basic unit of the Byzantine monetary system and was valued at 1/72 of a Roman pound of gold, weighing approximately 4.5 grams and being 24 karats pure.
The solidus was widely used in international trade and enjoyed prestige throughout the known world at the time, from North Africa to China.
The term bezant was also used in heraldry to refer to a roundel of gold color, symbolizing the high quality and purity of the Byzantine gold coins.
Byzantine coinage was issued under strict imperial control and was the most stable currency of the Middle Ages, making the gold solidus the preferred coin for international trade.
The Byzantine Empire operated several mints, with the main one located in Constantinople. However, most provincial mints were closed or lost to Arab Muslim invasions in the Mediterranean region by the mid-7th century onwards.
The purity of the gold solidus gradually decreased over time, with the fineness dropping from 24 karats during the reign of Constantine IX to as low as 8 carats during the reign of Nicephorus III. Under Alexius I Comnenus, the debased solidus was discontinued, and a new gold coinage of higher fineness, known as the hyperpyron, was established.
The term bezant was also used to describe gold dinars produced by Islamic governments and the gold coins minted in the Kingdom of Jerusalem and County of Tripoli, which were modeled on the Fatimid dinar.
Byzantium, as a term, was applied to the gold Byzantine coinage from the 9th century onwards, and the English usage, derived from Old French besan, dates back to the 12th century.“
“Bezant
In the Middle Ages, the term bezant (Old French: besant, from Latin bizantius aureus) was used in Western Europe to describe several gold coins of the east, all derived ultimately from the Roman solidus. The word itself comes from the Greek Byzantion, the ancient name of Constantinople, the capital of the Byzantine Empire.
The original “bezants” were the gold coins produced by the government of the Byzantine Empire, first the nomisma and from the 11th century the hyperpyron. Later, the term was used to cover the gold dinars produced by Islamic governments. In turn, the gold coins minted in the Kingdom of Jerusalem and County of Tripoli were termed “Saracen bezants” (besantius saracenatus), or “fake dinars” (dīnār ṣūrī), since they were modelled on the Fatimid dinar. A completely different electrum coin based on Byzantine trachea was minted in the Kingdom of Cyprus and called the “white bezant“.
The term bezant in reference to coins is common in sources from the 10th through 13th centuries. Thereafter, it was mainly employed as a money of account and in literary and heraldic contexts.“
“Byzantine Coinage
Byzantine currency, money used in the Eastern Roman Empire after the fall of the West, consisted of mainly two types of coins: gold solidi and hyperpyra and a variety of clearly valued bronze coins. By the 15th century, the currency was issued only in debased silver stavrata and minor copper coins with no gold issue.[1] The Byzantine Empire established and operated several mints throughout its history. Aside from the main metropolitan mint in the capital, Constantinople, a varying number of provincial mints were also established in other urban centres, especially during the 6th century.
Most provincial mints except for Syracuse were closed or lost to Arab Muslim invasions in the Mediterranean Region by the mid-7th century onwards. After the loss of Syracuse in 878, Constantinople became the sole mint for gold and silver coinage until the late 11th century, when major provincial mints began to re-appear. Many mints, both imperial and, as the Byzantine Empire fragmented, belonging to autonomous local rulers, were operated in the 12th to 14th centuries. Constantinople and Trebizond, capital of the independent Empire of Trebizond (1204–1461), survived until the invasion of Anatolia by the Ottoman Turks in the mid-15th century.“
[10] Renaissance Europe
Brave search engine summary “The Renaissance“
“The Renaissance was a period of ‘rebirth‘ in arts, science, and culture, typically thought to have originated in Italy and lasted from around the 14th to the 17th century. It marked the transition from the Middle Ages to modernity and was characterized by a revival of classical antiquity’s ideas and achievements. This period saw significant advancements in various fields, including art, architecture, politics, literature, exploration, and science. The term ‘Renaissance‘ means “rebirth” in French and first appeared in Giorgio Vasari’s ‘Lives of the Artists‘ around 1550. The Renaissance began in the Republic of Florence and later spread to the rest of Italy and throughout Europe. It is generally considered to have ended in Italy with the fall of Rome in 1527 and was eclipsed by the Reformation and Counter-Reformation elsewhere in Europe by the end of the 16th century.“
“Renaissance
The was a period of ‘rebirth‘ in arts, science, and culture, typically thought to have originated in Italy and lasted from around the 14th to the 17th century. It marked the transition from the Middle Ages to modernity and was characterized by a revival of classical antiquity’s ideas and achievements. This period saw significant advancements in various fields, including art, architecture, politics, literature, exploration, and science. The term ‘Renaissance‘ means ‘rebirth‘ in French and first appeared in Giorgio Vasari’s ‘Lives of the Artists’ around 1550. The Renaissance began in the Republic of Florence and later spread to the rest of Italy and throughout Europe. It is generally considered to have ended in Italy with the fall of Rome in 1527 and was eclipsed by the Reformation and Counter-Reformation elsewhere in Europe by the end of the 16th century.“
“Renaissance of the 12th century
The Renaissance of the 12th century was a period of many changes at the outset of the High Middle Ages. It included social, political and economic transformations, and an intellectual revitalization of Western Europe with strong philosophical and scientific roots. These changes paved the way for later achievements such as the literary and artistic movement of the Italian Renaissance in the 15th century and the scientific developments of the 17th century.“
“Italian Renaissance
The Italian Renaissance (Italian: Rinascimento [rinaʃʃiˈmento]) was a period in Italian history between the 14th and 16th centuries. The period is known for the initial development of the broader Renaissance culture that spread across Western Europe and marked the transition from the Middle Ages to modernity. Proponents of a “long Renaissance” argue that it started around the year 1300 and lasted until about 1600. In some fields, a Proto-Renaissance, beginning around 1250, is typically accepted. The French word renaissance (corresponding to rinascimento in Italian) means ‘rebirth’, and defines the period as one of cultural revival and renewed interest in classical antiquity after the centuries during what Renaissance humanists labelled as the ‘Dark Ages‘. The Italian Renaissance historian Giorgio Vasari used the term rinascita (‘rebirth‘) in his Lives of the Most Excellent Painters, Sculptors, and Architects in 1550, but the concept became widespread only in the 19th century, after the work of scholars such as Jules Michelet and Jacob Burckhardt.“
[11] The Age of Enlightenment
“Age of Enlightenment
The Age of Enlightenment (also the Age of Reason and the Enlightenment) was an intellectual and philosophical movement taking place in Europe from the late 17th century to the early 19th century. The Enlightenment, which valued knowledge gained through rationalism and empiricism, was concerned with a range of social ideas and political ideals such as natural law, liberty, and progress, toleration and fraternity, constitutional government, and the formal separation of church and state.
The Enlightenment was preceded by and overlapped the Scientific Revolution, which included the work of Johannes Kepler, Galileo Galilei, Francis Bacon, Pierre Gassendi, Christiaan Huygens and Isaac Newton, among others, as well as the rationalist philosophy of Descartes, Hobbes, Spinoza, Leibniz, and John Locke. The dating of the period of the beginning of the Enlightenment can be attributed to the publication of René Descartes’ Discourse on the Method in 1637, with his method of systematically disbelieving everything unless there was a well-founded reason for accepting it, and featuring his famous dictum, Cogito, ergo sum (‘I think, therefore I am‘). Others cite the publication of Isaac Newton’s Principia Mathematica (1687) as the culmination of the Scientific Revolution and the beginning of the Enlightenment. European historians traditionally dated its beginning with the death of Louis XIV of France in 1715 and its end with the outbreak of the French Revolution in 1789. Many historians now date the end of the Enlightenment as the start of the 19th century, with the latest proposed year being the death of Immanuel Kant in 1804.“
[12] The Florin of Florence
Brave search engine for “florin money“
“Florin Money
The florin is a type of coin that has a rich history and has been used in various forms across different countries. In Italy, the Florentine florin was a gold coin minted from 1252 to 1533, known for its stability and widespread acceptance in trade across Europe. It was made of 24-carat gold and weighed 3.5 grams, with a purchasing power that could range from approximately 140 to 1,000 modern US dollars depending on the social context and perspective.
In Great Britain, the florin was introduced as part of an experiment in decimalisation in 1849, and it was a silver coin worth two shillings or one-tenth of a pound. This British florin was demonetised in 1993, having circulated alongside the ten-pence piece for a quarter of a century.
The term ‘florin‘ was also adopted in other countries, such as the Dutch guilder, which is symbolized as Fl. or ƒ, meaning florijn (florin).
The Florentine florin played a significant role in the economic history of Europe, influencing the design and value of coins in other countries and serving as a standard for comparing values between late medieval currencies.“
“Florin
The Florentine florin was a gold coin (in Italian Fiorino d’oro) struck from 1252 to 1533 with no significant change in its design or metal content standard during that time.
It had 54 grains (3.499 grams, 0.1125 troy ounces) of nominally pure or ‘fine’ gold with a purchasing power difficult to estimate (and variable) but ranging according to social grouping and perspective from approximately 140 to 1,000 modern US dollars. The name of the coin comes from the Giglio bottonato (it), the floral emblem of the city, which is represented at the head of the coin.“
[13] The “First Age Of Enlightenment“
For the purpose of this blog, I am using the term the “First Age of Enlightenment“. I will elaborate on this in later articles. Suffice it to say that I believe that bitcoin will usher in our Second Age of Enlightenment.
[14] The Gold Standard
Brave search engine summary “the gold standard summary“
“The Gold Standard
The term ‘gold standard’ originally refers to a monetary system where currency is convertible into a fixed quantity of gold or is freely convertible into gold at a fixed price. This system was first adopted in Britain in 1821 and was widely implemented by other nations in the 1870s. It ended with the outbreak of World War I in 1914 and was reestablished in 1928. However, due to the relative scarcity of gold, most nations adopted a gold-exchange standard, which collapsed during the Great Depression. The U.S. set a minimum dollar price for gold in 1971, leading to the abandonment of the gold standard.“
Note of Correction: The gold standard was first started in France in 1814 with the minting of the French franc, not Great Britain in 1821. Credit to “The Bitcoin Standard” by Saifedean Ammous for pointing this out on page 35 of his book.
Brave search engine summary “monetary gold standard“
“Gold Standard Definition
A gold standard is a monetary system where the standard economic unit of account is based on a fixed quantity of gold.
Historically, the gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and again from the late 1920s to 1932, as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold, effectively ending the Bretton Woods system.
Under a gold standard, the government’s currency is fixed and may be freely converted into gold.
In this system, the government links the value of its paper money to a stock of gold reserves. For example, in the United States in the early 20th century, the definition of a dollar was taken to mean one-twentieth of an ounce of gold, so it would take 20 dollar bills to purchase one ounce of gold.
However, the gold standard had several drawbacks. It restricted a government’s ability to manage its economy by printing or minting new currency to boost economic growth, since gold is a finite resource.
Additionally, maintaining a fixed exchange rate between gold and silver, as in the bimetallic standard, was difficult and caused economic instability and volatility in commodities trading.“
“Gold Standard
A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold, effectively ending the Bretton Woods system. Many states nonetheless hold substantial gold reserves.“
[15] “The Bitcoin Standard“
Credit needs to be given to the author and Austrian School economist, Saifedean Ammous, and his two seminal works “The Bitcoin Standard” and “The Fiat Standard“. I cannot recommend these books highly enough.
Mr. Ammous is probably the first true economist not just to embrace bitcoin but actually to write, not one but, two books on bitcoin and its effects on our world. Both books provide proper historical, economic, and sociological contexts for why a hard money standard is necessary for true prosperity and that soft money (fiat currency) always leads to calamity and the rise of tyranny.
If you have not read his books then you should probably do it as soon as possible.
Full Disclosure: I have no ties to Mr. Ammous nor do I benefit financially from promoting his books. My promotion of Saifedean’s books is a part of making BitcoinInPeace.com a better blog for the readers.