Bitcoin represents the future of money from "summary" of The Fiat Standard by Saifedean Ammous
Bitcoin represents the future of money not because it is a new technology, but because it is a return to an old monetary standard that has been proven over centuries. While the technology underlying Bitcoin is certainly cutting-edge, the monetary system it represents is as old as money itself - the gold standard. Just as gold has served as money for thousands of years due to its scarcity, durability, divisibility, and recognizability, so too does Bitcoin possess these key attributes that make it an ideal form of money. Bitcoin's scarcity is built into its code, with a maximum supply of 21 million coins that can ever exist. This fixed supply ensures that Bitcoin cannot be debased through inflation, unlike fiat currencies that can be printed at will by central banks. Its durability is evident in the fact that Bitcoin transactions are recorded on an immutable ledger called the blockchain, making it resistant to censorship and tampering. Divisibility is a key feature of money, and Bitcoin can be divided into smaller units with ease, making it highly fungible and usable in eve...
Similar Posts
Balancing security and usability in blockchain applications
When developing blockchain applications, it is crucial to strike a delicate balance between security and usability. Security is...
Inflation erodes the value of fiat money
The insidious nature of inflation is perhaps best understood when considering its effect on the value of fiat money. Inflation,...
Central banks have the power to manipulate the value of fiat money through inflation
Central banks have the ability to increase the money supply by creating more money. This increases the amount of money in circu...
It is based on government decree
The concept of fiat money is one that is based on government decree. This means that the value of the money is not backed by an...
It cannot be manipulated by central banks
The fact that it cannot be manipulated by central banks is what makes Bitcoin so unique and valuable. Unlike fiat currencies, w...