Economist Tyler Cowen has expressed his belief that Ethereum founder Vitalik Buterin is a strong candidate for the Nobel Prize in Economics, likening Ethereum’s seamless transition from proof of work (PoW) to proof of stake (PoS) to “changing a tire while driving.”
Cowen, a leading economist and academic, noted several reasons why Buterin deserves this award. Cowen said that while traditional economists have made minimal contributions to the crypto space, Buterin has not only created a functional digital currency, but has also challenged established economic theories such as Ludwig von Mises’ regression theorem.
According to the theorem, currency derives its value from its intrinsic value as a physical commodity, such as gold. Cowen noted that Ethereum, led by Buterin, disproves this idea by creating trust and value without relying on physical assets.
Cowen also noted Ethereum’s historic transition from PoW to PoS, which Cowen said was a remarkable feat, as it happened without bringing the network down. Ethereum’s upgrade, commonly referred to as “The Merge,” significantly reduced the network’s energy consumption while maintaining security and decentralization.
Cowen praised Buterin for his character as well as his technical achievements, noting his gentle demeanor, generous charitable donations, and deep thinking on global economic challenges: “He built a Vitalik platform, he created a currency, he disproved Mises’ regression theorem in the process, he’s clearly following in the footsteps of Satoshi, what does one have to do to get a Nobel Prize?”
Another famous economist, Alex Tabarrok, echoed Cowen’s views, arguing that Bitcoin’s founder, Satoshi Nakamoto, should also be awarded the Nobel Prize. However, Tabarrok noted that Nakamoto’s identity is still unknown and that he may be dead.
*This is not investment advice.
