We Study Billionaires - The Investor’s Podcast Network BTC057: How Fiat Works w/ Dr. Saifedean Ammous (Bitcoin Podcast)
Dec 22, 2021
Dr. Saifedean Ammous, author of 'The Bitcoin Standard' and 'The Fiat Standard,' dives deep into the intricacies of fiat currency and its impact on our economy. He highlights the four key elements of the fiat system and how it distorts value and incentives in areas like food and academia. Saifedean discusses the shadow banking system and the role of the IMF, revealing how fiat complicates economic calculations. With keen insights, he critiques the inefficiencies of fiat and explores how Bitcoin might reshape the financial landscape.
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Fiat as a Network
- The fiat system, like Bitcoin, has nodes, miners, and a proof-of-work system.
- Fiat "mining" occurs through debt creation by licensed lenders.
Fiat's Spatial Advantage
- Fiat's advantage over gold is its ease of transfer across distances.
- Bitcoin must surpass this advantage for widespread adoption.
Inflation as a Vector
- Inflation acts like a vector, affecting goods differently.
- Digital goods and industrial products experience less inflation than nutritious food or desirable assets.
