Bitcoin is digital gold, a reliable store of value that cannot be inflated away from "summary" of The Bitcoin Standard by Saifedean Ammous
Many people find it difficult to understand the concept of Bitcoin as digital gold, a reliable store of value that cannot be inflated away. This difficulty arises from a lack of understanding of the properties that make gold a reliable store of value. Gold has been used as money for thousands of years because of its scarcity, durability, divisibility, portability, and recognizability. These properties make gold an excellent store of value because they make it difficult to debase or manipulate. Bitcoin shares many of these properties with gold, which is why it is often referred to as digital gold. Bitcoin is scarce because there will only ever be 21 million bitcoins in existence. This scarcity is programmed into the Bitcoin protocol and cannot be changed. Like gold, Bitcoin is also durable, meaning it does not corrode, degrade, or lose its properties over time. This durability ensures that Bitcoin will retain its value over the long term. Bitcoin is also divisible, meaning it can be broken down into smaller units for transactions. This divisibility makes Bitcoin highly portable and easy to transfer. In addition, Bitcoin is highly recognizable, meaning that it is easy to verify the authenticity of a bitcoin. These properties combined make Bitcoin an excellent store of value that cannot be inflated away. The inability to inflate Bitcoin away is a key feature that distinguishes it from fiat currencies. Governments and central banks have the power to print unlimited amounts of money, leading to inflation and a decrease in the value of the currency. This inflation erodes the purchasing power of people's savings and leads to economic instability. Bitcoin's fixed supply makes it immune to inflation and ensures that its value will remain stable over time. This stability makes Bitcoin a reliable store of value that can protect people's wealth from the devaluation caused by inflation. As more people come to understand these properties of Bitcoin, its status as digital gold will become more widely accepted.
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