1 December 2013 | By Jeffrey Tucker | libertarianstandard.com
Many people have asked me to respond to Gary North’s article on Bitcoin but I’m pretty much over giving detailed responses to people who haven’t done basic homework on the topic. Still, I was thrilled to receive this nice point-by-point rebuttal, which I publish here:
Debunking Gary North’s “Bitcoins: The Second Biggest Ponzi Scheme in History”
by John Mather
Gary North is no stranger to predictions. Perhaps his most famous one is his widely publicized prediction that Y2K would end civilization as we know it. In his Bitcoin article, North makes another technology related prediction: after Social Security, Bitcoin will go down as the biggest Ponzi scheme in history. North’s article is riddled with false premises and faulty logic demonstrating that he does not understand Bitcoin.
North is widely recognized as an expert on Austrian economics, and I make no claim to the contrary. North purports to base his critique of Bitcoin on Austrian economic theory. However, his arguments are so weak that he makes Austrian economics look bad, to the point that someone unfamiliar with Austrian theory could finish his article doubting the validity of Austrian theory. One reader who linked North’s article on a message board even commented that the article made him want to stop referring to himself as Austrian.
This article attempts to rectify this unfortunate situation by calling out the faults in North’s arguments and showing how his arguments diverge from Austrian economics.