"In July 2014, when Bitcoin was trading near six hundred dollars and most executives dismissed it as an internet novelty, Pierre Rochard published an essay titled Speculative Attack. It was a dense, Austrian-leaning treatise that argued Bitcoin would not be adopted because it was "better technology," but because economic reality would force adoption. People, he wrote, would eventually borrow weak money to buy strong money, and in doing so, trigger a chain reaction that undermines fiat itself."
"Austrian economics frames this as spontaneous order. Sound money outcompetes debased money because actors seeking to preserve value migrate toward scarcity and credibility. Bitcoin represents the culmination of that process: Perfect scarcity - a terminal supply of 21 million units. Decentralized issuance - no discretionary authority to expand it. Verifiable integrity - every unit auditable in real time. Under Thiers' Law, corporations holding melting cash reserves face the same decision individuals once did: retain inferior currency or reprice reserves in the superior one."
A 2014 thesis predicted Bitcoin adoption through economic forces rather than technological appeal: actors would borrow weak money to buy stronger money, destabilizing fiat. Classical monetary theory and Thiers' Law imply that superior money displaces inferior money when markets are free. Bitcoin embodies superior monetary properties: fixed 21 million supply, decentralized issuance, and verifiable integrity. The speculative-attack mechanism has migrated from individual investors to corporate treasuries, with public companies issuing debt and equity to build Bitcoin reserves rather than funding traditional capital projects. Corporations now face a choice to hold depreciating fiat or reprice reserves into Bitcoin as a preservative asset.
Read at Bitcoin Magazine
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