The Bitcoin Standard - Book Review
The Bitcoin Standard is a book written by Saifedean Ammous that explores the history of money and why Bitcoin has the potential to become the new gold standard. The book is a fascinating read for anyone interested in economics, finance, and technology, and provides a comprehensive overview of the benefits of Bitcoin as a monetary system.
Ammous argues that money is a product of the market, not the state, and that gold has historically been the most successful form of money because of its unique properties. Gold is scarce, durable, divisible, and recognizable, which makes it an ideal store of value and a means of exchange. However, gold has certain limitations, such as its weight, transportability, and the need for trusted intermediaries to verify its authenticity and facilitate transactions.
Bitcoin, on the other hand, offers all the benefits of gold, but with significant improvements. Bitcoin is digital, which means it is infinitely divisible, easily transportable, and can be transmitted instantly around the world without the need for intermediaries. Bitcoin is also decentralized, meaning it is not controlled by any single entity, and its supply is fixed and predictable, making it immune to inflation.
The Bitcoin Standard explores how Bitcoin works as a monetary system and how it has the potential to replace gold as the global standard of value. Ammous argues that Bitcoin is the next logical step in the evolution of money and that it represents a fundamental shift in the way we think about economics and finance.
One of the key themes of the book is the importance of sound money, which is money that is not subject to inflation and is based on a fixed and predictable supply. Ammous argues that sound money is essential for economic growth and prosperity, and that fiat currency, which is money created by governments and central banks, is inherently flawed because it is subject to inflation and is not based on any tangible asset.
Bitcoin, by contrast, is based on a fixed supply of 21 million coins, which will never be increased or decreased. This makes it immune to the inflationary pressures of fiat currency and gives it a unique advantage as a store of value and a means of exchange.
Another key theme of The Bitcoin Standard is the importance of decentralization. Ammous argues that decentralization is essential for economic freedom and prosperity, and that centralization leads to corruption, inefficiency, and a lack of innovation. Bitcoin's decentralized nature, which means it is not controlled by any single entity, makes it an ideal form of money for a free and open society.
Overall, The Bitcoin Standard is an insightful and thought-provoking book that explores the history of money and the potential of Bitcoin as a monetary system. It provides a compelling argument for why Bitcoin is the future of money and why it has the potential to replace gold as the global standard of value. If you're interested in economics, finance, or technology, I highly recommend giving it a read.
The youtube link below is a summary of the book by Ammous, in this live book presentation he goes into detail about the book covering most topics. Highly recommended if interested.