With the crypto major – Bitcoin has been adopted by the world-wide crypto community, the renowned Bitcoin Economist Dr. Saifedean Ammous has recommended this digital currency saying that “the hardest money ever created will triumph over existing fiat currencies because its finite supply means it will always be a better store of value over time.”
Dr. Ammous argued that world’s renowned cryptocurrency having a limited a total supply of 21million of individual coins, so what if when miners have found the plenty of this bitcoins, and the planet’s supply will be exhausted eventually? Let us not forget that this fixed supply itself elaborates more about the BTC’s value ten years down the line which has appreciated so far about 700million percent.
With the advent of his book namely “The Bitcoin Standard: The Decentralised Alternative to Central Banking” in place, Dr. Ammous has gone through the entire perspective significantly. The book contains everything from BTC’s inception by a pseudonymous programmer or group of programmers called Satoshi Nakamoto to all those odd circumstances that this crypto has gone through so far.
Accordingly him “this upstart autonomous decentralized software offers an unstoppable and globally-accessible hard money alternative to modern central banks”.
It’s obvious that the physical assets are not poised to gaining a monetary role compared to the new age digital currency. Dr. Ammous further elaborated more about the perspective saying that “Bitcoin is not the toy you want, it is the medicine you need. As the number of coins in circulation increases the cryptocurrency becomes a “harder” asset, making it a better store of value, BTC has become a “monetary good” because its value is “completely determined by people buying it and selling it” rather than people producing it.”
The major reason behind the flourished price of Bitcoin is the supply growth rate is quite low. BTC’s supply growth rate was believed to be one percent erstwhile compared to other fiat currencies which tend to be about five percent. With this, he said, “all-conquering juggernaut of economic incentives” because as its supply incrementally increases year-on-year, its value soars – unlike traditional fiat currencies.”
Based on the forecast that Dr. Ammous did in the past, the price of bitcoin has been quite volatile as the asset has gone through huge swings in terms its value however for a short period of time.
Amid the entire story, Nicky Morgan, the Treasury Committee chair criticized the Bitcoin as the “Wild West”. Further, she said, “Bitcoin exists in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks. And so, the Treasury Committee strongly believes that regulation should be introduced.”
Dr. Ammous sees this crypto major a decentralized banking system around the world that makes the task easy and fair when it comes to transacting through it.
Besides this, the Lebanese American University’s Profession criticized the entire perspective saying that “stores of value that are easy such as fiat currencies will eventually become redundant and “hard money” will thrive.”
Let us not forget that the ultimate wealth will stay in the hands of those that have earned the hardest money. While in case of bitcoin which is considered to be one of the unique property whose supply is completely unresponsive to demand as criticized by the profession.