Recently, two economists engaged in a conversation about the upcoming Nobel Prize in Economic Science, suggesting Ethereum co-founder Vitalik Buterin as an unexpected contender due to his impact on the cryptocurrency landscape.
Economists Put Forth Unconventional Candidate For Nobel Prize In Economics
On Tuesday, Tyler Cowen and Alex Tabbarok shared their insights on potential winners for the upcoming Nobel Prize in Economics during an episode of The Marginal Revolution Podcast. They addressed previous winners deemed “questionable” and explored non-traditional candidates, including Vitalik Buterin.
Cowen nominated the Ethereum co-founder as his atypical choice, highlighting Buterin’s role in cryptocurrency development. He argued that, unlike many economists, Buterin has “actually made a significant contribution to monetary economics” and has advanced the “theory of crypto.”
Tabbarok concurred, noting that economists are increasingly paying attention to the crypto industry, “as it constitutes a larger segment of the economy,” while emphasizing that foundational work in crypto was primarily done by computer scientists.
Moreover, he described crypto as an “applied mechanism design in the real world,” citing both Bitcoin and Ethereum as remarkable illustrations. Tabbarok stressed that these technologies are actionable today, even though many would have deemed their success “impossible” in the past.
Cowen elaborated on Buterin’s contributions, pondering what more is needed for the Ethereum founder to be considered for the prize:
Vitalik constructed a platform, initiated a currency, and one could argue he challenged Mises’ regression theorem along the way. Following Satoshi’s legacy, my goodness, what does one have to accomplish to earn a Nobel Prize?
The Case For Ethereum’s Founder To Win The Prize
The economists pointed out the impressive performance of the Ethereum network, which boasts a market valuation of hundreds of billions of dollars. As of now, Ethereum leads in total value locked (TVL), showing $45.9 billion and a 57.4% market share.
Currently, ETH, the second-largest cryptocurrency linked to the Ethereum ecosystem, has a market cap nearing $293 billion, according to CoinMarketCap data.
In support of Buterin’s candidacy, Tabbarok highlighted that he has played a critical role in the network’s mechanism design by transitioning from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) model.
He regarded the ability to maintain network operations during this transition as an impressive achievement. “Have you seen those videos of individuals in Saudi Arabia changing car tires while driving? That’s what Ethereum accomplished. Incredible,” Tabbarok remarked.
Moreover, Cowen argued that Buterin’s insights into monetary economics stand out, surpassing those of many other economists in related fields: “No economist offers more valuable perspectives on the subjects he addresses. To me, that’s significant in this discussion.”
To conclude their advocacy for Buterin’s candidacy, the economists noted his philanthropic efforts, referencing his substantial crypto donations worth millions to various charities.
The conversation briefly touched on the ongoing speculation regarding Bitcoin’s creator’s identity. Tabbarok suggested that Satoshi Nakamoto could have been a deserving candidate for a Nobel Prize in economics, but he expressed doubt over the possibility due to Nakamoto’s likely demise.
Ultimately, Cowen dismissed his companion’s theory surrounding Bitcoin’s creator but agreed that a Nobel Prize might not be feasible, as he doesn’t “think it’s possible to award someone whose identity remains unknown.”
Ethereum (ETH) is trading at $2,435 in the three-day chart. Source: ETHUSDT on TradingView
Featured image from The New York Times, Chart from TradingView.com
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish