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BTC to the moon! ??
The Bitcoin Standard Book
The Bitcoin Standard Book Summary - Saifedean Ammous
1. Currency is crucial because without it we would be forced to barter. It doesn’t scale.
2. Moving from the gold standard to fiat/paper currency created a century of boom and bust cycles, along with increasing inequality and debt.
3. Rai stones were used as money on Yap island. This was great as it was scarce and easily divisible, like gold. Then a foreigner imported loads of Rai stones to buy coconuts on the island. This made the currency worthless due to the massive supply, and Rai stones went back to being worthless stones. This is what happens to every fiat currency as the central bank prints to oblivion.
4. Currency debasement was developed to fund wars. Rulers started “coin clipping”. This increased inflation and led to the fall of the Roman empire.
5. War always leads to massive inflation. That’s why they abandoned the gold standard after ww1, people wouldn’t have liked the new fiat:gold valuation and if they overvalued the paper currency, people would’ve just traded it for gold and sold abroad.
6. Sound money such as gold is the basis for a functioning economy. That’s why we have so much poverty, investments aren’t keeping up with the real rate of inflation. The official government statistics are a lie. Sound money encourages savings and investment, crucial for sustainable, long term economic growth. The current high inflationary environment promotes investment but no savings.
7. Bitcoin is the only good that’s defined by absolute scarcity. The network is also safe and can’t be attacked. Bitcoin has been volatile however the fluctuations should decrease as the market grows.
8. We could peg fiat currency to Bitcoin, however this would require centralised institutions to monitor it.
"Bitcoin is poorly suited
"Bitcoin is poorly suited to the purpose of becoming any nation's main medium of exchange."
That was the topic of a public debate hosted by the Soho Forum in New York City on August 12, 2019. It featured George Selgin, director of the Center for Monetary and Financial Alternatives at the Cato Institute, and economist Saifedean Ammous, author of The Bitcoin Standard: The Decentralized Alternative to Central Banking (2018). Soho Forum Director Gene Epstein moderated.
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It was an Oxford-style debate, in which the audience votes on the resolution at the beginning and end of the event, and the side that gains the most ground is victorious. Ammous prevailed in the debate by convincing 23 percent of audience members to change their minds.
Arguing for the affirmative was Selgin, whose books include Less Than Zero: The Case for a Falling Price Level in a Growing Economy (2018) and Floored! How a Misguided Fed Experiment Deepened and Prolonged the Great Recession (2018).
Ammous argued for the negative. An associate professor of economics at Lebanese American University, Ammous is also teaching an online course in bitcoin and Austrian economics.
The Soho Forum, which is partnered with the Reason Foundation, is a monthly debate series at the SubCulture Theater in Manhattan's East Village.
Music: "Modum" by Kai Engel is licensed under a CC-BY creative commons license.
Produced by Todd Krainin.
How can Selgin say that Bitcoin is volatile, say that gold isn't a good medium of exchange and be in favor of a gold standard. It makes 0 sense to me
With my average understanding of Bitcoin, I'm taking the glass-half-full outlook.
It sounds like Prof. Ammous is saying Bitcoin should become the "gold standard" to the worlds economies.
So, if the world had been on the bitcoin standard in 2014 when global GDP was somewhere around $86 trillion, 1 of the 14 million Bitcoin in circulation would have been worth $6,142,857.14.
And when Bitcoin production is capped in 2140, the value of Bitcoin should directly mirror the value of all the world's economies.
If the worlds GDP were to grow at 3% per annum, the world GDP will double in size by 2037.
Conservatively If the world has adopted the 18 million Bitcoin that will be in circulation as its gold standard by 2037, 1 Bitcoin will apparently be worth $9,555,555.56, conservatively.
$1000 worth of Bitcoin today could be worth $987,000 in 2037 if the magic happens.
If I own 1 Bitcoin today, my 1/21 millionth ownership stake in the world economy in 2140 could be valued at well worth the price I paid in 2020. If the world goes on the Bitcoin standard.
I should be getting Bitcoin while it's still "cheap".
Here in the US we will still have the dollar. It will be a digital Dollar. The digital Dollar will be backed by our supply of Bitcoin. The total digital Dollar supply in circulation will not exceed the dollars backed by Bitcoin. The transaction will be based on trust in the dollar. Transaction will occur just as quickly as when we were on the gold standard. Store owners will balance their books (add to the blockchain) at the end of the day or continuously all day long, as usual. It will all be digital. It will be easy.
There will be little need to paralyze daily business operations while waiting for a transaction to settle.
So, what will it take to convince the US government to start hoarding Bitcoin, TODAY?
These two both have brilliant minds. Instead of thinking that it's one versus the other think of them as two men that could be a part of a powerful think thank. The key to not being weak is leveraging the strengths of others.
This is two speakers who agree BTC-Bitcoin is not a good replacement for cash. A real peer-to-peer electronic cash for the world's people such as Bitcoin Cash (BCH) is working to become, is the thing to debate vs fiat.
BTC-Bitcoin was infiltrated and intentionally corrupted to block/delay the creation/adoption of peer-to-peer electronic cash for the world's people. Many social engineering operatives like Mr Safedean fill social media with false narratives about how a crippled Bitcoin is still valuable even though it cannot be popular (used by many per day). I agree BTC will be able to survive as a settlement layer, but, that functionality will not be enough to retain the coins inflated value. If BTC was a "store of value" (it has not been that yet) that value will not last without functionality/scale-ability. The BTC owners knew this and claimed the answer was the Lightning Network second layer to save BTC from it's intentional functional limitations. We now know LN is a joke that will not fix the lack of scaling.
The idea that BCH will not become global cash because it is not getting a lot of daily use today is a red herring. This oft stated false narrative is a hope and dream of the anti-cryptocurrency forces that control BTC-Bitcoin. The mature infrastructure for adoption and use of a real peer-to-peer electronic cash for the world's people is not in place yet. When any real P2P currency catches on it will grow quickly and it's value will do the same at that time.
Ammous doesn't understand what he is talking about or deliberately misrepresenting the thing.