Economy System (04)

The theory we believe in

In the field of cryptocurrency, in addition to Satoshi Nakamoto, another great thinker is also highly respected. He is Friedrich August von Hayek.

Hayek was one of the most important political thinkers of the 20th century. He also made considerable contributions to the fields of law, systems thinking, history of thought, and cognitive science.

Hayek is a representative of the Austrian economics school. His core idea is liberalism. He inherited the ideas of the enlightenment thinkers of the 18th century. Starting from individualism, he emphasized maintaining human autonomy. This freedom includes political freedom, freedom of thought, and economy freedom. Among them, economy freedom is the foundation of freedom. The way to achieve economy freedom is to implement a market economy, so that the market mechanism can give full play to its regulatory role and allow people to compete freely in the market. Therefore, the market economy is a “natural order” that is formed from individualism and can guarantee human freedom. It is an economy system that is most in line with human nature.

Hayek spent his life adhering to free-market capitalism, known for opposing Keynesianism. The British economist is active in thought, academic excellence, writing, etc., and has published the “Road to Slavery”.

In his later years, Hayek implemented economic liberalism to the end, aimed at fiat currency, the last bastion of a free economy, questioned the legal rationality of the country’s monopoly currency, proposed the shocking theory of “competitive currency,” and wrote the last book of his life Book-Denationalization of Money.

Hayek’s Theory — -Denationalization of Money

In “Denationalization of Money”, Hayek first attacked the state to issue fiat currencies, and proposed to replace the fiat currency with a “competitive currency.” In Hayek’s theory, the root cause of the instability in the active market is because the most important self-regulating component in the market, namely, currency, is controlled by the government. Hayek does not believe that the government can formulate the most reasonable monetary management method through various formulas. The government’s abuse of the monopoly power of currency issuance leads to inflation. The government’s use of monetary policy to regulate economic effects has little effect. Make your own profit.