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Ep. 200 Vijay Boyapati Explains Why He Was RIght About Inflation in 2010 and Bitcoin in 2018

Vijay Boyapati left a lucrative job at Google in 2007 to move to New Hampshire and campaign for Ron Paul. In this episode, Vijay explains why the other Austrians should have listened to him in 2010 when he warned that their inflation predictions were wrong. He also explains his popular 2018 essay, “The Bullish Case for Bitcoin.”

Mentioned in the Episode and Other Links of Interest:

The audio production for this episode was provided by Podsworth Media.

About the author, Robert

Christian and economist, Research Assistant Professor with the Free Market Institute at Texas Tech, Senior Fellow with the Mises Institute, and co-host with Tom Woods of the podcast "Contra Krugman."

6 Comments

  1. clort39 on 05/12/2021 at 9:51 AM

    I think Vijay presents an important insight here, one I wrote about independently a few years ago.

    Boiled down it is this: Mises solved the problem of monetary value by considering the time element. The value today is based on expected purchasing power in future transactions. Per Mises, that value is based solely on the purchasing power it had yesterday.

    Here’s where Vijay and I think the error lies, as revealed by cryptocurrencies. The expected future value can be based on other considerations that inform our planning, in the case of crypto, “this new thing confers additional utility OVER prior money, in addition to having other good properties”.

    We think that Mises and followers have been in a rut of thinking with respect to money. That classical Austrian view is biased towards ‘yesterday’s value’ whereas Austrian Economics in all other aspects of business and economic life emphasize the forward-looking planner and his expectations of value, which are based on many factors, often not visible to anyone but himself.

    I commend Vijay for promoting this significant advancement in understanding better than I ever could.

    • clort39 on 05/13/2021 at 1:30 AM

      I should add: The added utility i referred to, is mainly that cryptocurrencies can verify exchanges of value without relying on some jerks in control of the central lever. They can do this across the planet, with less chokeholds and delays than shipping gold.

      They do this by forming a massive community of participants, with verifiable contributions. Their weakness is that they rely on an uncensored internet. And this we must fight for. But in light of the covid farce, who will?

      I am not bullish on crypto in light of the events of 2020. On the other hand, i was a bear in 2009, when i was in the trenches with the first adopters. I was sure it would be shut down quickly. I can be too negative, at times. 🙂

  2. Ohad Osterreicher on 05/12/2021 at 7:57 PM

    This guy talks too much

  3. clort39 on 05/13/2021 at 3:02 AM

    May i also add that Bob Murphy does a comment section right? In contrast to mises.org and tomwoods.com, he hosts his own comments, and thereby is not subject to the censorship of a third-party big-tech hosting platform like disqusting.

    We should freakin respect that.. This is the right way.

  4. Ken P on 05/17/2021 at 8:33 PM

    Great episode. it’s interesting that many Austrians have issues with bitcoin, while some news articles talk as if Austrians are the biggest proponents.

    Bitcoin is not a country, but it is a community. And it has embassies, like the one in New Hampshire: bitcoinembassynh.org Some claim we will see cloud countries in the future. I think there is some sort of community consensus required for crypto currencies to emerge and wouldn’t be surprised to see multiple cryptos to have a foothold as primary for their particular communities.

  5. Tel on 05/25/2021 at 10:59 PM

    Sinclair Davidson’s theory that crypto creates new trust which did not previously exist … since trust makes exchanges easier, and it’s difficult to create, therefore valuable.

    https://catallaxyfiles.com/2021/05/25/crypto-dispatches/

    My RMIT University colleagues and I guesstimate that the trust underpinning the pre-COVID global economy was worth about $US29 trillion a year. All that trust was generated the old-fashioned way – personal relationships, organisational hierarchy, auditing and surveillance.

    Many of the mechanisms and institutions that generate trust in an industrial economy can now be replaced by algorithms and smart contracts in a digital economy. The cost of producing trust has fallen, and we can expect to see a lot more of it.

    Arun Sundararajan – professor of entrepreneurship at New York University – has argued “every time there was a big expansion in the world’s economic activity, it was generally induced by the creation of a new form of trust”.

    The industrialisation of power led to a period of astonishing economic growth and human flourishing. It is early days, but just imagine what the industrialisation of trust could achieve.

    There’s something to that way of thinking, but it’s very loose when you consider how difficult it would be to attempt to measure trust in an empirical way.

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