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Free Minds & Free Markets

Can Bitcoin Become the Global Monetary Standard?: New at Reason

With its supply permanently capped at 21 million units, Satoshi Nakamoto's invention may turn out to be the best form of money ever conceived.

St. Martin's PressSt. Martin's PressIf you find it hard to imagine how bitcoins could ever replace dollars as the world's primary medium of exchange, consider the bizarre tale of the donut-shaped "rai" stones on the island of Yap. Weighing up to four metric tons and standing up to 12 feet tall, these rocks couldn't be slipped into a wallet, deposited in a bank, or even moved around without enormous effort.

Yet for centuries they served the Yapese people as an effective form of money, because "the high cost of acquiring new stones" made them hard to debase, writes Saifedean Ammous in The Bitcoin Standard: The Decentralized Alternative to Central Banking. The system lasted until the 1870s, when the Irish-American ship captain David O'Keefe managed to overwhelm the island's economy with a new supply of the giant limestone discs.

It's an artful beginning to a book that makes a case for bitcoin as the best form of money ever conceived, writes Jim Epstein in the latest issue of Reason.

Photo Credit: St. Martin's Press

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