Top Economist Argues Bitcoin’s Fixed Supply Makes It Superior to Gold

Saifedean Ammous, renowned economist and author of The Bitcoin Standard, argues that Bitcoin offers a far superior alternative to gold.

He believes Bitcoin’s fixed supply, combined with its decentralized nature, positions it as a more reliable store of value than traditional assets.

Gold, while historically valued for its scarcity, faces challenges in maintaining that status due to its annual supply increase of around 1.5% to 2%. In contrast, Bitcoin’s total supply is capped at 21 million coins, making it inherently more limited and resistant to inflation.

One of Bitcoin’s strongest points is its digital and decentralized nature. Unlike gold, which requires physical storage and transport, Bitcoin exists purely in the digital realm, making it far easier to transfer and secure globally. This unique characteristic allows Bitcoin to operate outside the reach of centralized governments, unlike fiat currencies controlled by monetary policies.

The economist emphasizes that Bitcoin’s design allows it to address pressing financial issues, such as inflation. While governments can inflate fiat currencies at will, Bitcoin’s capped supply ensures it cannot be devalued by such actions, positioning it as a more stable and secure form of money in the long term.

He also criticizes the reliance on debt within traditional financial systems. Ammous points out that the creation of money through debt leads to economic instability and inflation, which benefits governments at the expense of everyday people. Bitcoin, however, operates independently of this debt cycle, providing a more stable alternative.