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Stephan Livera Podcast

SLP1 - Bitcoin as Sound Money with Saifedean Ammous, Austrian Economist

Jul 23, 2018
Stephan interviews Saifedean Ammous, Austrian Economics Professor and author of The Bitcoin Standard. They explore Bitcoin's potential as sound money, its volatility and challenges in establishing stability, the importance of money as a store of value, Bitcoin's block difficulty adjustment, its monetary policy and competition, the potential for fractional reserve banking on Bitcoin, and debunking Keynesian economics.
01:19:23

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Quick takeaways

  • Bitcoin's scarcity and slow supply growth contribute to its potential as a widely accepted form of sound money.
  • Bitcoin's volatility is a natural part of its path towards becoming a hard form of money.

Deep dives

Bitcoin as Sound Money and Saleability

Bitcoin is seen as sound money because it fulfills certain characteristics that make it valuable, similar to gold. It has a high stock to flow ratio, meaning the existing supply of Bitcoin is large compared to the new supply being produced. This scarcity makes it a desirable store of value and medium of exchange. The concept of saleability is crucial, as it refers to the widespread acceptance of a currency as a store of value. Bitcoin's slow supply growth and increasing adoption contribute to its potential to become a widely accepted form of sound money.

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