Bitcoin's Pursuit of a Monetary Standard
The article "Bitcoin's Pursuit of a Monetary Standard" by Thejaswini M A, based on a reading of Saifedean Ammous' "The Bitcoin Standard," explores the concept of money as a technology for transferring value across time, space, and scale. It emphasizes "salability" and introduces the critical idea of "hardness"—money whose supply is difficult to increase. The author reviews historical examples of money, such as Yap's Rai Stones, African Aggry beads, and wampum, which all lost value when their supply was easily expanded by new technology or trade. Precious metals, particularly gold, emerged as superior due to their scarcity and high stock-to-flow ratio. The critique then shifts to government-issued fiat currency, arguing it represents an unbacked, easily inflated system that erodes savings and leads to economic instability. While acknowledging the book's persuasive framework and its effective use of historical anecdotes, the author remains unconvinced by its one-sided, Austrian economics-influenced narrative that blames fiat for modern societal ills. The key takeaway is a new perspective on evaluating any asset: to critically ask how easily new units can be created and to be wary of anyone who can print money faster than one can earn it.
marsbit02/04 02:15
