It only makes sense that Jack Dorsey is a Twitter influencer. The mind behind Twitter used its platform to promote “Anatomy Of the State,” an essay by Murray N. Rothbard. The Austrian School of Economics is slowly penetrating mainstream consciousness. Dorsey’s focus and devotion to the ideals of Bitcoin reached a whole new level. And crypto twitter responded in different ways, with Rothbard’s name trending over the weekend.
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The tweet that started it all offered no explanation:
– jack⚡️ (@jack) August 14, 2021
The .pdf file it contains is freely distributed by Mises.org, an institution dedicated to “promoting teaching and research at the Austrian School of Economics as well as individual freedom, honest history and international peace in the tradition of Ludwig Von Mises and Murray, “dedicates N. Rothbard.” About the incident, the increased attention they received, and Dorsey’s election, the institution said:
Dorsey did not link to an article on Bitcoin or money, but rather to Murray N. Rothbard’s groundbreaking 1974 essay “Anatomy of the State”. That short letter may well represent Rothbard’s most determined and incisive attack on the government as an institution, and that says something .
So this is not just an essay. What exactly does it say about the government?
A summary of “Anatomy of the State”
This short book is deep and covers many concepts and hard truths. The monopoly of force. The fallacy of the term “social contract”. How governments use “selfish economic interests” to keep us in check. “The alliance between the state and intellectuals.” War. Revolution. The alliances between different states. Social power. State power. A lot. However, we could sum up “Anatomy of the State” with this example it offers:
“One method of founding a state can be described as follows: In the hills of the southern“ Ruritania ”a band of bandits succeeds in gaining physical control of the territory, and finally the bandit chief proclaims himself“ King of the sovereign and independent ”. Government of South Ruritania ”; and if he and his men have the strength to uphold this rule for a while, lo and behold! a new state has joined the “family of nations” and the former bandit leaders have been transformed into the realm’s rightful nobility.
And that explains the world we live in.
BTC price chart for 08/17/2021 on Bitstamp | Source: BTC/USD on TradingView.com
Ok, but what does Rothbard have to do with Bitcoin?
The Mises.org Institute links Dorsey’s tweet “Anatomy Of the State” to this:
– jack⚡️ (@jack) August 15, 2021
That refers to this phenomenal website that uses easy-to-understand charts to show how things got exponentially worse when Nixon peeled the US dollar from gold, which led to the era of the fiat currency. The time we live in. Well, that relates directly to the Austrian School of Economics, as the institute explains:
Only Austrian economists present a coherent criticism of the pure fiat currency, which means that only Austrians have anything compelling to say about Nixon’s final completion of the gold redemption. The Mengerian and Misesian explanation of how money arises and increases in value as a highly salable good does not require a central tax or monetary authority. It doesn’t need a state.
And do you know what else no state or central authority needs to function? Bitcoin, the greatest money ever created.
“The Mengerian and Misesian Declarations of how money arises and gains value as a highly salable good does not require a central tax or monetary authority. It does not require a state.” @jeffde is for @mises commenting on @jack’s tweets https://t.co/BvlKNM6cAZ
– Stephan Livera (@stephanlivera) August 16, 2021
What is solid money and how do we get it?
And that refers to “Anatomy Of the State” on our sister website’s Book Club. They analyze “The Bitcoin Standard” and define solid money as:
Austrian economists argue that “the best money revolved around understanding saleability and what the market would choose as money”. Saifedean Ammous adds something else.
“… the saleability of money according to the will of its owner and not of another party. The combination of these criteria formulates a complete understanding of the term healthy money as the money that is freely chosen by the market and the money is completely under the control of the person who legitimately earned it in the free market and not of another third party. ”
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In summary, the human family does not need the independent government of South Ruritania to dictate what we should use as money. We have bitcoin. And that is exactly what Dorsey’s “Anatomy Of the State” tweet was about.
Featured Image: extract from “Anatomy Of the State's” cover image | Charts by TradingView