Nearly 30 years ago, Nobel Laureate American economist Milton Friedman said he wanted to have money controlled by a computer. In addition, the economist stated that there would be a better world without the Federal Reserve. One of his two wishes already points to the existence of Bitcoin and seems to predict the rise of BTC in 1991. Also, the FED’s steady withdrawal causes increasing criticism. In this case, it shows that Friedman is also a matter of time to realize his other desire.
If Milton Friedman Were Alive
Friedman came up with a clip where he talked about the need for an asset like BTC 18 years before Bitcoin was invented. It may be a bit creepy to think that the clip below was shot 30 years ago.
"I would like to have money controlled by a computer" – Milton Friedman 1991 pic.twitter.com/V07aznLTMd
— Bitcoin (@Bitcoin) April 13, 2020
Friedman, the main advocate against today’s Keynesian government policies, developed a macroeconomic perspective known as “monetarism”. He argued that instead of printing money at the discretion of the FED, the money supply should expand slowly and steadily.
Coronavirus and Bitcoin (BTC)
Historical economy recovery packages, which we see as a precaution against coronavirus pandemics, will probably turn Friedman upside down in his grave. Friedman expressed his desire to have money under computer control in 1991, which was not intervened and could not adjust at the discretion of the policy.
The video clip was posted on Twitter and naturally garnered likes, retweets, and applause. In some comments, the words “If he was still alive, he would have invested everything in Bitcoin”, “We will realize his dream Milton.”
Bitcoin (BTC) is not the first digital currency
Of course, given the fact that Bitcoin is the most successful experiment of decentralized money, protected against unauthorized access, running on computers (nodes), it may be easy to forget the digital assets that came before Bitcoin.
David Chaum launched DigiCash in 1989, which uses cryptography for private payments and introduces the concept of public and private keys. The digital currency project, which can be transferred internationally without state control, has received considerable support from libertarians and small groups.
Although DigiCash and other projects before Bitcoin did not gain momentum, Friedman was not unfamiliar with the fact that electronic money was needed. He believed this would happen in the future. In fact, he said the same year:
One thing we are still missing and will develop soon is reliable e-cash. E-cash is a method in which money can be transferred from A to B on the Internet without knowing A and B.
Bitcoin offers a viable alternative to fiat and is completely free from central actors. Will Friedman’s second wish come true? Will the FED be removed entirely? It will be interesting to watch how things will happen after this stage.