The Bitcoin Standard is a bestselling book penned by Saifedean Ammous. Ammous hails from Austria and is a bonafide economist. He was recently invited to a podcast to talk with the Lex Fridman. During the interview, Ammous discussed several important issues like inflation, recession, and global economic deterioration.
Therein, he also shed light on the role of cryptocurrencies like Bitcoin in remedying the issue. Without withholding his opinions regarding the disadvantages of Bitcoin, he discussed the merits of the digital token in great detail. At present, Bitcoin and the greater crypto market are caught up in a cascading trend.
Speaking on the matter, Ammous claimed that a great number of issues in the world are generated by the monetary mechanisms that warrant effortless income.
Austrian Economist Claims that Bitcoin can Fix the Broken Financial System
Austrian economist, Ammous, claimed that Bitcoin is a remedy to fix the issues like constantly increasing inflation created by the governments. Furthermore, it can ensure a more justified distribution of wealth among individuals.
He claimed that Bitcoin offers the certainty of trade commodities like gold and, at the same time, garners a massive liquidity pool with the ability to turn into any type of fiat currency in real-time.
He also highlighted the immutability of the Bitcoin network, which cannot be altered. He also said that since its conception, the consensus measurement mechanism for the Bitcoin blockchain had not changed at all. In his opinion, the addition of updates or forks to a blockchain network that many investors regard as innovation can be detrimental to the financial appetite of its investors.
According to Ammous, the Bitcoin network is a type of blockchain project that has chosen to remain the same, all the while ensuring that the investors who are using this model keep updating themselves.
He shared the example of big techs like Facebook, Apple, Amazon, and others that keep upgrading. He claims that these projects are centralized, and they can upgrade easily at any given time; therefore, they are also called a liability by maximalists like Michael Saylor.
He also commented in favor of the high volatility factor of Bitcoin, adding that the contemporary fiat currencies are relatively slower in their devaluation rate. He further added that while the dollar does not devalue 40-60 percent every other day but it keeps depreciating consistently.
Meanwhile, he is also a proponent of Bitcoin mining power requirements, calling them justified on account of its adaptability so that a miner can set up shop anywhere and source the energy from a diversified number of sources.