Chatter Report: Troutner Proposes Stablecoin on BCH, Sztorc: Austrian Economics ’Unnecessary’
In today’s roundup of crypto chatter, Chris Troutner and Andreas Brekken play around with the idea of building an algorithmic stablecoin on BCH. Vin Armani debates with Painted Frog on Bitcoin’s similarities to Visa. Also, Paul Sztorc thinks that understanding Austrian economics is not that important to comprehend Bitcoin.
Building an Algorithmic Stablecoin on BCH
Recently Shitcoin.com CEO Andreas Brekken took to crypto Twitter to wish everyone a happy new year. In his tweet, Brekken casually mentioned algorithmic stablecoins, an idea that Bitcoin.com senior developer Chris Troutner picked up on.
Do you know of any algorithmic stable coins worth checking into, other than DAI?
— Chris Troutner (@christroutner) December 30, 2018
Troutner queried Brekken for alternatives to the DAI, but the latter was not familiar with the field. Brekken then explained that he was optimistic about the technology, even though many academics and maximalists don’t believe algorithmic stablecoins are possible.
Whormhole or kekoen can most likely do this.
— Deadal Nix (@deadalnix) December 31, 2018
Bitcoin More Similar to Visa Than Gold
Recently, CTO of Cointext Vin Armani had a debate with his followers on what the catalyst for Bitcoin mass adoption would be. Armani argued that those who stand to gain financially from bitcoin usage are the ones most likely to increase Bitcoin adoption.
Incentivizing Bitcoin Mass Adoption
Q. Who has the greatest incentive to convince you to use Visa?
Why? Because every time you use Visa, Visa makes money.
Those who will be the catalyst for Bitcoin mass adoption will be those who get paid every time you use Bitcoin.
— Ⓥin Ⓐrmani (@vinarmani) December 30, 2018
Not everyone responded well to Armani’s theory, as commentator Painted Frog argued that Bitcoin is intrinsically valuable like gold. Since society didn’t need to be convinced to use gold in the past, Bitcoin like gold, will eventually be used everywhere.
Armani responded by explaining that Bitcoin is more similar to Visa because both are systems and networks. On the other hand, gold is simply a shiny rock and an inert element.
Bitcoin: A Peer-To-Peer Electronic Cash System
Note the last word. That's the noun. What precedes it are adjectives.
Bitcoin, like Visa, is a SYSTEM, a network. Gold is an inert element. A rock is not a system.
— Ⓥin Ⓐrmani (@vinarmani) December 30, 2018
The Importance of Austrian Economics In Bitcoin
Austrian economics has always been a huge part of the Bitcoin community, and the growing popularity of Bitcoin has sparked a revived interest in Austrian economics. This was pointed out by the President of the Nakamoto Institute Michael Goldstein on social media. Some like cryptocurrency pundit Murad Mahmudov agreed with Goldstein and tweeted that cryptocurrency community members who understand Austrian economics have an edge over those who don’t.
Crypto market participants who do not have a grasp of Austrian econ are at a disadvantage. I’d argue that Bitcoin is an ‘Austrian’ technology & its success is breaking the legitimacy and relevance of a number of other economic schools in real time.
“We are all Austrians now” https://t.co/glhjz0aFBQ
— Murad Mahmudov (@MustStopMurad) December 29, 2018
However, director of research at Tierion Paul Sztorc and bitcoin pundit Nic Carter both argued that the importance of Austrian economics is highly overstated in the cryptocurrency space. While Carter confessed that he had never read any books on Austrian economics, Sztorc explained that he was very familiar with the Austrian school of thought.
Nor do I.
A cursory understand of the inflation tax is sufficient.
(And I say this despite having read AE very extensively.) https://t.co/B59qLJqHVJ
— Paul Sztorc (@Truthcoin) December 30, 2018
Despite a thorough understanding of Austrian Economics, Sztorc insists that only a brief understanding of how the government prints away purchasing power, also known as inflation tax, is enough to understand Bitcoin.
What do you think of an algorithmic stablecoin built on BCH? Let us know in the comments below.
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