Bitrabo Editorial
Two respected economists have recently named Ethereum co-founder, Vitalik Buterin, as a surprising candidate for this year’s Nobel Prize in Economic Science, highlighting his notable contributions to the cryptocurrency sector.
Surprising Nobel Prize Nominee: Vitalik Buterin
On a recent episode of The Marginal Revolution Podcast, economists Tyler Cowen and Alex Tabbarok shared their forecasts for the next Nobel Prize in Economics. They examined past winners with questionable relevance and proposed Buterin as an unconventional choice, emphasizing his role in advancing cryptocurrency.
Cowen remarked on Buterin’s significant influence on monetary economics, expressing that his active involvement separates him from traditional economists. He noted Buterin’s contributions to the “theory of crypto” as a major reason for his nomination.
Tabbarok supported Cowen’s sentiments, indicating a growing interest among economists in the crypto sphere, which is becoming a larger component of the economy, while highlighting that early crypto principles were largely rooted in computer science.
He emphasized that cryptocurrencies like Bitcoin and Ethereum are practical examples of applied mechanism design, asserting that despite previous skepticism, they are functioning successfully in the modern world.
Cowen elaborated on Buterin’s accomplishments, questioning what more he would need to achieve to be recognized with a Nobel Prize:
Vitalik established a platform, created a currency, challenged Mises’ regression theorem, and certainly followed in Satoshi’s footsteps. Truly, what must one do to deserve a Nobel Prize?
Making a Case for Buterin’s Recognition
The economists pointed out Ethereum’s substantial performance, highlighting its market valuation in the hundreds of billions. Currently, Ethereum leads with a total value locked (TVL) of $45.9 billion and holds a 57.4% market share.
Additionally, ETH, which drives the Ethereum ecosystem, boasts a market cap close to $293 billion, as reported by CoinMarketCap.
Tabbarok also noted Buterin’s ongoing contributions to the network’s design, particularly his transition from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) system.
He praised the achievement of maintaining network operations during this transformative process, likening it to changing tires on a moving car. “That’s what Ethereum accomplished. Incredible,” stated Tabbarok.
Cowen further stressed that Buterin’s perspectives on monetary economics are unparalleled, claiming no economist presents better insights on his topics of interest. “That, in my view, holds considerable weight in this discussion,” he asserted.
In concluding their argument for Buterin’s candidacy, the economists acknowledged his philanthropic efforts, referencing his significant crypto donations to various charities totaling millions of dollars.
They also touched on the ongoing speculation about the identity of Bitcoin’s creator. Tabbarok suggested that Satoshi Nakamoto deserves a Nobel Prize, but remarked on the improbability of this occurring, given Nakamoto’s likely demise.
Cowen disagreed with Tabbarok’s claim about Nakamoto but concurred that the prize wouldn’t be awarded to someone whose identity remains unconfirmed.