Who is Milton Friedman and how did he predict the emergence of Bitcoin in 1999?
American economist Milton Friedman, one of the most influential free market proponents, made a curious observation in 1999. He suggested that the internet would eventually require a form of anonymous electronic cash—a tool allowing people to transfer value directly and without government involvement. At the time, such technology seemed almost abstract, but these very properties later became the foundation of Bitcoin.
We explain who Milton Friedman was and how he managed to anticipate the emergence of the first cryptocurrency.
Who is Satoshi Nakamoto or who invented Bitcoin?
Milton Friedman is a name every Cryptan should know.
Milton Friedman is a remarkable figure and, without exaggeration, a fundamental figure in modern economic thought. He wasn't just a Nobel Prize winner, but a man who knew how to explain monetary policy in a way that captivated students, politicians, and anyone who happened to tune in to his lecture on television.
At the core of his thinking was the idea of minimal government intervention in the economy. Friedman advocated clear rules, against excessive control, and for expanding the financial freedom of individuals. He often emphasized that any economic decisions ultimately affect the personal wealth of millions of people—their savings, their right to manage their earnings, and their privacy.
This view, which places people above the system, has proven surprisingly close to the philosophy of the cryptocurrency world over time.
How Friedman predicted Bitcoin in 1999
In a 1999 interview, Milton Friedman noted that the internet was developing rapidly, but it lacked a key component: anonymous electronic money. Without it, he argued, the digital environment could not become a full-fledged alternative to the traditional financial system.
He listed the properties that such money should have:
- Privacy comparable to cash.
- The possibility of direct exchange of value between people, without intermediaries.
- The absence of a system control center so that no one can determine the rules alone.
At the time, this sounded like a general theoretical construct. But almost ten years after this interview, the Bitcoin whitepaper, written by the anonymous Satoshi Nakamoto, appeared. The properties Friedman outlined literally formed the structure of the first cryptocurrency.
A prediction that was destined to come true
Milton Friedman wasn't a technology expert and didn't attempt to describe the technical architecture of cryptocurrencies. He observed the logic of societal development. The internet was expanding, but old financial mechanisms remained centrally controlled. People needed more privacy and control over their funds.
Friedman saw a gap: digital life had accelerated, but the financial system remained stagnant. He understood that sooner or later, a tool would emerge to fill this vacuum. And when blockchain emerged, it became clear that the technology perfectly fit the criteria Friedman had formulated back in 1999.
Today, Bitcoin has grown into a fully-fledged financial asset. It's used for transfers, long-term storage, inflation hedging, and simply as a technological symbol of autonomy. And in each case, the ideas Milton Friedman spoke of are evident: freedom, privacy, independence.
The crypto industry has long since moved beyond the experimental stage, but the fundamental principle on which it is based remains unchanged. That's why Friedman's idea, expressed in 1999, still resonates. It helps us understand not only the origins of Bitcoin but also why cryptocurrency was able to establish itself in the global financial system in the first place.
Source: cryptonews.net
