15 Years Ago Milton Friedman Predicted the Birth of Bitcoin

A significant number of libertarians are enthralled with bitcoins (BTC) because it’s a digital currency that doesn’t come from the federal government and regulators, at least in the United States, have yet to put their hands on the cryptocurrency market.

A video that was published this past August is only now starting to make the rounds on the Internet, but it’s an important one that will gain traction over the next few days. Milton Friedman, a famous libertarian economist of the 20th century and author of “Free to Choose” and “Capitalism and Freedom,” predicted in 1999 that the Internet would establish an anonymous e-cash payment system, which now would be considered bitcoin.

The concept of bitcoin was apparently supported by Friedman, although he wasn’t an ardent proponent of the idea of competing currencies. However, he did endorse a free society and the unimpeded interaction between individuals as long as they don’t force their will onto others (non-aggression principle).

Friedman argued in the interview that the Internet would be one of the “the major forces reducing the role of government.” Although it’s still in its infancy and its future is still unclear, bitcoin could be one of those web currencies that could hinder the U.S. greenback.

Here is exactly what Friedman said:

Milton Friedman“I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A. The way I can take a $20 bill hand it over to you and then there’s no record of where it came from.

You may get that without knowing who I am. That kind of thing will develop on the Internet and that will make it even easier for people using the Internet. Of course, it has its negative side. It means the gangsters, the people who are engaged in illegal transactions, will also have an easier way to carry on their business.”

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