Presented at Milano-Bicocca University, Milan
The disruptive innovation of the Bitcoin protocol, with special attention to the bitcoin currency, is introduced. Framed in a quick history of money, bitcoin is evaluated as crucial step in monetary evolution, which has enabled competition between cryptocurrencies and traditional legal tender fiat currencies.
Despite rapidly increasing acceptance, so far the affirmation of cryptocurrency as better money has been thwarted by dramatic deflationary price instability. Successful at disposing of any central monetary authority using the Bitcoin protocol, the bitcoin currency has accidentally thrown away the flexibility of an elastic supply of money.
A cryptocurrency with a fully automatic non-discretionary elastic monetary rule ensuring price stability is defined to be "Hayek Money": the new good money standard providing stable prices for a new economic era.