“The Bitcoin Standard” is a book by economist Saifedean Ammous that explores the history, properties, and potential of Bitcoin as a monetary system. The book argues that Bitcoin is a revolutionary technology that has the potential to transform the global financial system, and that it is based on sound economic principles that make it superior to traditional fiat currencies.
The book begins by exploring the history of money and the role that gold has played as a monetary standard throughout human history. Ammous argues that gold has been the best form of money because it is scarce, durable, divisible, and portable, and that it has served as a store of value and a medium of exchange for thousands of years. He goes on to argue that Bitcoin is the digital equivalent of gold, and that it shares many of the same properties that have made gold a successful form of money.
Ammous then provides an overview of the technical aspects of Bitcoin, including its decentralized, peer-to-peer network, its cryptographic security, and its deflationary supply schedule. He explains how Bitcoin works as a digital currency and how it can be used as a store of value, a medium of exchange, and a unit of account.
One of the key arguments of the book is that Bitcoin represents a return to sound money principles, which have been abandoned by modern fiat currencies. Ammous argues that fiat currencies, which are not backed by any tangible asset and can be printed by governments at will, are inherently unstable and subject to inflationary pressures. He suggests that the adoption of Bitcoin as a global monetary standard could lead to a more stable and predictable financial system.
The book also explores the potential implications of Bitcoin for the global financial system, including the potential for Bitcoin to disrupt traditional banking and finance. Ammous suggests that Bitcoin has the potential to eliminate the need for intermediaries such as banks and credit card companies, and that it could facilitate faster, cheaper, and more secure transactions. He also argues that Bitcoin could be used as a hedge against political and economic instability, and that it could help to promote economic freedom and decentralization.
Throughout the book, Ammous provides a wealth of examples and anecdotes to illustrate his arguments. He draws on historical examples such as the gold standard, as well as contemporary examples such as the hyperinflation in Venezuela, to demonstrate the advantages of a sound money system. He also provides case studies of businesses and individuals who have adopted Bitcoin, and explores the potential benefits and risks of investing in Bitcoin.
Overall, “The Bitcoin Standard” is a well-researched and thought-provoking book that provides a comprehensive overview of the history, properties, and potential of Bitcoin. It argues that Bitcoin is a revolutionary technology that has the potential to transform the global financial system, and that it is based on sound economic principles that make it superior to traditional fiat currencies. The book is recommended for anyone who is interested in learning more about Bitcoin and its potential impact on the global financial system.