Saifedean Ammous on Why Bitcoin is the Most Advanced Form of Money
The Bitcoin Standard Podcast
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The Importance of Stock to Flow
The most important metric for the success of a money is what I call the saleability across time or how well money is able to hold on to its value over time. Gold and silver are metals whose stock to flow ratio is significantly higher than one. For all other market commodities that people accept and use daily, the stock to flow is always within the range of one. And so this makes oil terrible as a form of money because new production is quite significant compared to existing stockpiles. This doesn't happen with gold and to a lesser extent, silver, because gold is effectively indestructible.
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