Why Bitcoin Now: Michael Casey and Niall Ferguson on How Bitcoin Fits in the History of Money - Ep.181

Jul 14, 2020

Michael Casey, Chief Content Officer at CoinDesk, and Niall Ferguson, a Senior Fellow at Stanford, dive into the evolution of money and Bitcoin's role in it. They share personal journeys into crypto amid financial turmoil, emphasizing trust in new monetary systems. The duo discusses Bitcoin's potential as digital gold and its volatility, while examining the power struggle between the US dollar and emerging digital currencies from China. They also ponder how blockchain could reshape finance and empower individuals in a shifting economic landscape.

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ANECDOTE

Ferguson's Bitcoin Intro

Niall Ferguson's son encouraged him to explore Bitcoin.
Ferguson initially dismissed it, believing money required state backing.

INSIGHT

Money's Essence

Money represents a creditor-debtor relationship, taking many forms throughout history. Today, most money is created by banks, not physical currency.

INSIGHT

Satoshi's Message

Satoshi's genesis block message highlighted the 2008 banking crisis. This timing emphasizes Bitcoin's potential response to financial instability.

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Truth Machine

Ruth McNally

Michael Lynch

Kathleen Jordan

Simon A. Cole

The ascent of money

A Financial History of the World

Niall Ferguson

In 'The Ascent of Money', Niall Ferguson explores the human story behind the evolution of finance, from the origins of money in ancient Mesopotamia to the latest financial upheavals. Ferguson argues that finance is the foundation of human progress and reveals financial history as the essential backstory behind all history. The book covers key financial institutions and concepts, such as the invention of banking, the development of bonds and stock markets, and the role of insurance and real estate. It also delves into the impact of financial systems on historical events and the recurring theme that every financial bubble eventually bursts[1][3][4].

The age of cryptocurrency

Paul Vigna

In 'The Age of Cryptocurrency', Paul Vigna and Michael J. Casey provide a thorough analysis of Bitcoin's history, its underlying blockchain technology, and the broader implications of digital currencies on the financial system. The book delves into the economic, social, and technological aspects of cryptocurrencies, highlighting their potential to disrupt traditional financial structures and offer new opportunities for financial inclusion.

Square and the Tower

Networks and Power, from the Freemasons to Facebook

Niall Ferguson

In this book, Niall Ferguson argues that networks have always been a crucial part of human society, from ancient cults to modern social media platforms like Facebook. He uses social network analysis to demonstrate how these networks often hold more real power than the hierarchical institutions they challenge. The book explores historical examples, including the Reformation and the rise of revolutionary ideas, to illustrate the ongoing struggle between 'the Square' (networks) and 'the Tower' (hierarchies). Ferguson also applies network theory concepts to understand both the past and the present, offering insights into how networks can transform our understanding of history and current affairs.

The Deficit Myth

Modern Monetary Theory and the Birth of the People's Economy

Stephanie Kelton

In this book, Stephanie Kelton challenges conventional economic wisdom by arguing that government deficits are not inherently bad and can actually strengthen economies. She dispels six key myths about deficits, such as the idea that governments should budget like households, that deficits harm future generations, crowd out private investment, and undermine long-term growth. Kelton explains that in a fiat currency system, governments are not constrained by the same budgetary rules as households or businesses. Instead, the real constraints are the limits of real resources and the threat of inflation. The book advocates for using MMT to address critical social issues like poverty, inequality, unemployment, healthcare, and climate change by shifting the focus from narrow budgetary questions to broader economic and social benefits.

The big problem of small change

Thomas J. Sargent

Francois R. Velde

This book explores the centuries-long challenge faced by monetary authorities in providing small change, which often led to shortages and inflation. Sargent and Velde explain how this issue was eventually resolved by transitioning to fiat money, laying the groundwork for modern monetary systems. The authors present a comprehensive history and theory of small change, offering insights into the evolution of Western European economies.