- As can be understood from statements made in an interview by Milton Friedman 30 years ago, the idea of digital assets was born much earlier.
- At the same time, Friedman predicted the existence of a completely internet-based form of money and that the government would provide privacy without intervention for all parties involved in transactions.
- In line with these statements, some commentators have pointed out that Friedman’s predictions referred more to privacy-focused currencies like Monero (XMR) and Zcash (ZEC) instead of Bitcoin.
It turned out that Friedman, who won the 1976 Nobel Memorial Prize in Economic Sciences, drew attention to the digital currency in his comments about the internet and the future.
Future-oriented thoughts of the Nobel Prize-winning economist
Although cryptocurrencies such as Bitcoin (BTC) have been around for about 15 years, the idea of digital assets was born much earlier, as evidenced by remarks made by Nobel Prize-winning economist Milton Friedman in an interview published 30 years ago.
Milton Friedman, who won the Nobel Prize in Economic Sciences in 1976 for his research on consumption analysis, monetary history and theory, and research on the complexity of stabilization policy, was revealed to have praised the invention of the internet in a video from 1993.
Crypto analyst Dennis Parker first shared the video on February 3, 2018, when the interview was about 25 years old. As the famous economist explained at that time:
“The internet will make it very difficult to collect taxes on services regardless of their kind because it will allow transactions to take place ‘in cyberspace’ rather than ‘on the ground,’ and the internet will one day become a significant force in reducing the role of the government.”
At the same time, Friedman predicted the existence of a completely internet-based form of money and that the government would provide privacy without intervention for all parties involved in transactions. He stated:
“What is missing now, but will soon develop, is a reliable e-cash method in which you can transfer funds from A to B over the internet, without A knowing B or B knowing A, and the transfer can be done instantly, without going through a third party, and there will be no record of where the money came from, and you will have your account, identified only by your name, and the rest of the information is in your computer. This kind of thing will develop on the internet and will make it easier for people to use the internet.”
Friedman also addressed the disadvantages of the system
Interestingly, the Nobel laureate, Berkshire Hathaway vice chairman, and billionaire Charlie Munger, who is among the most outspoken critics of the crypto industry, noted the disadvantages of such a monetary system.
“Of course, it has downsides. It means that criminals and people engaged in illegal transactions can conduct their businesses more easily. But I think the tendency to make tax collection more difficult will have a very significant positive effect of the internet.”
In line with these statements, some commentators have pointed out that Friedman’s predictions referred more to privacy-focused currencies like Monero (XMR) and Zcash (ZEC) instead of Bitcoin. Others said, “His main theory revolves around economic freedom, and blockchain perfectly facilitates this freedom.”
Meanwhile, Bitcoin was trading around $26,720 at the time of writing, with a daily decrease of 0.89%, a weekly increase of 2.07%, and a monthly increase of 3.05%.
