Central banks cannot manipulate the value of Bitcoin, making it immune to inflation from "summary" of The Bitcoin Standard by Saifedean Ammous
Bitcoin's unique characteristic as a decentralized digital currency lies in its resistance to manipulation by central banks. Unlike traditional fiat currencies that can be devalued at the whims of government authorities, Bitcoin's value remains unaffected by such intervention. This immunity to inflation is a result of the limited supply of Bitcoin, which is predetermined and cannot be altered by any central authority. The scarcity of Bitcoin is ingrained in its code, with a maximum cap of 21 million coins that can ever be mined. This fixed supply ensures that no entity can simply create more Bitcoin out of thin air, thereby safeguarding its value against the erosive effects of inflation. In contrast, central banks have the power to print more money, leading to a decrease in the purchasing power of existing currency in circulation. Bitcoin's decentralized nature also means that it is not subject to the political agendas or economic policies of any single government. This lack of central control insulates Bitcoin from the risks associated with central bank manipulation, such as quantitative easing or currency devaluation. As a result, Bitcoin serves as a reliable store of value that can withstand the fluctuations and uncertainties of the traditional financial system.- The inability of central banks to influence the value of Bitcoin sets it apart as a hedge against inflation and economic instability. By offering a decentralized alternative to fiat currencies, Bitcoin provides individuals with a secure and independent means of transacting value in the digital age. Its resistance to inflation makes Bitcoin a compelling asset for those seeking to preserve their wealth in a world where traditional monetary systems are susceptible to external manipulation.
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