An Open Letter to Yanis Varoufakis About Bitcoin – Bitcoin Magazine

Yanis Varoufakis was Greece’s finance minister during the Greek economic crisis. In 2012, he explored utilizing a blockchain-based system to help manage some of the crisis. Varoufakis has spoken critically about bitcoin publicly on many occasions, he understands the power of bitcoin but feels its economics is dangerous.

During a Twitter thread on Bitcoiners engaging with people outside of our usual circles, I suggested Varoufakis, who, as a Keynesian, has clearly seen value in some aspects of Bitcoin. Rather poetically he retweeted the thread.

I wanted to write a short letter bringing him up to speed on some of the changes that have happened in Bitcoin, and whether the functionality now available will impact his opinions.

“The economy is too important to leave to the economists”

– Yanis Varoufakis


Dear Mr Varoufakis,

For a long time Bitcoin has pricked your interest, but after analysis of its economics you have been left with serious and very valid concerns, such as its deflationary issuance, and its ability to disarm governments from using money to stimulate the economy.

“powerful tendency to underestimate the ill-effects of deflation on a social economy”

https://yanisvaroufakis.eu/2014/02/15/bitcoin-a-flawed-currency-blueprint-with-a-potentially-useful-application-for-the-eurozone/

“there can be no de-politicised currency capable of ‘powering’ an advanced, industrial society.”

https://yanisvaroufakis.eu/2013/04/22/bitcoin-and-the-dangerous-fantasy-of-apolitical-money/

As a great supporter of your work, I hope to address some of those concerns. I know you explored implementing a blockchain-centric solution during the Greek crisis, and that you are no stranger to the technology of Bitcoin or its tenets, so forgive me if I cover a few things you already know.

One of the computer-science solutions that makes Bitcoin possible is that it is free and open-source software, a sort of cooperative for software development and a direct response to…

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