George Selgin is now required reading for bitcoiners
http://oll.libertyfund.org/titles/selgin-the-theory-of-free-banking-money-supply-under-competitive-note-issue#lf1544_head_007 George starts with examples of how free banking allowed participants to thrive and how times of economic distress were always signaled by restrictions and government created monopolies. Then he explores a fictionao land Ruritania and goes over the four stages in which free banking would evolve. He shows how this evolution leads to an equilibrium and the equilibrium is Ideal Money. The system naturally evolves such that a commodity money (gold historically, but obviously bitcoin today since bitcoin broke the money printing monopoly) becomes the settlement and clearing system for major banks. This shows how fractional reserve banking in a free market is good and leads to Ideal Money using bitcoin
We should consider Bitcoin, as a (George Selgin defined) commodity money, might be best evolved to have no other utility than settlement
Selgin defines commodity money to be, for example, gold that arises as units of settlement between major banks. I've always argued bitcoin will arise to serve as this effectively replacing gold (or SDR's the IMF uses etc.). Selgin also notes that as the money tends towards ideal supply through a naturally approached equilibrium process less of the actual commodity is needed and thus it is freed up for other uses. Gold might be then used for space equipment etc. But there is seemingly no need or want to structure bitcoin to do this. What would it matter if the participating banks used 21 million bitcoins or 1 million bitcoins or 500 bitcoins and the rest were used for other purposes other than settlement? It would also necessary effect the price/value of a bitcoin which is counterproductive to a stable unit of value. What is also interesting is if we consider this argument then bitcoin is really nothing new in regard to a settlement system, its simply the commodity money Selgin describes. But the blockchain provides tamper proof security which is a residue left over from the process. It's what is really the new technology and yet it doesn't really add to the utility of bitcoins.
TL;DR: The author of The Bitcoin Standard, Saifedean Ammous, will argue for bitcoin as a medium of exchange in a debate against The Cato Institute’s George Selgin at the Soho Forum in New York. It will be an odd juxtaposition for Ammous on Monday, August 12th, 2019, who famously urges the hodl, store of value position. Bitcoin: Problems and Prospects George Selgin, Director Center for Monetary and Financial Alternatives The Cato Institute Washington, DC 20005 November 12, 2014 Prepared for Hillsdale University’s 2014 Free Market Forum, Indianapolis, Indiana, October 23-25. !! Hut 8: The Struggles of One of Canada’s Largest Bitcoin Miners. CoinDesk Quarterly Review, Q1 2020. Bitcoin: The Halving and Why It Matters George Selgin. Get the Latest from CoinDesk. Sign George Selgin, Director of the Cato Institute's Center for Monetary and Financial Alternatives, tweets: It can't be said often enough: whatever else may or may not be true about bitcoin, so long as it isn't widely adopted _as a means of payment_, it's neither "money" nor "currency." George Selgin is a senior fellow and director of the Center for Monetary and Financial Alternatives at the Cato Institute and Professor Emeritus of Economics at the University of Georgia.
We're going to be stuck with dollars for a long time - George Selgin
George Selgin is Director of Cato's Center for Monetary and Financial Alternatives and author of many books about money such Money: Free and Unfree, and Floored. George Selgin is a senior fellow and director of the Center for Monetary and Financial Alternatives at the Cato Institute and Professor Emeritus of Economics at the University of Georgia. Saifedean Ammous recently debated Professor George Selgin at the Soho Forum on the subject of Bitcoin's suitability to replace existing currencies and challenge central banks. We review that ... Financial Inclusion: The Cato Summit on Financial Regulation Spotlight: Bringing Faster Payments to People George Selgin, Director, Center for Monetary and Financial Alternatives, Cato Institute ... We cover the recent run-up in the price of bitcoin, the economics of bitcoin, and the role that governments and regulations will play in this emerging market. ... George Selgin - Duration: 59:13 ...