Dr. Saifedean Ammous, an economist who is also the author of The Bitcoin Standard, said that Bitcoin (BTC) excels as a currency (currency).
“From an Austrian economic perspective, Bitcoin meets the criteria as a form of money. The fixed and limited supply of Bitcoin and its resilience to inflation are key to the advantages of Bitcoin as a currency, ”Ammous said in a YouTube video hosted by senior journalist Laura Shin.
According to Ammous, from this point of view money is a unique thing, regardless of the number of monetary units, but in purchasing power.
Ammous gave an example between the US dollar and the yen. He said that while some people prefer 10 yen to 1 US dollar, others still prefer to keep 1 US dollar instead of 10 yen. The reason is, because the value of 1 US dollar is more than 10 yen.
"So, it is not the number of units of money that you get, but the purchasing power. Using such a pattern, an asset which has a fixed and limited supply (Bitcoin-Red), has a solid foundation that can function as money (money). In fact, Bitcoin is better money. Bitcoin n is the most advanced form of money ever created. And because the supply is fixed and limited, Bitcoin is really resistant to inflation, ”he explained.
According to Ammous, one of the most remarkable things about Bitcoin is the fact that it is reaching a significant adoption rate without the help of any country.
"For me, the great thing about Bitcoin is that Bitcoin has been successfully adopted as money (because it can be used as a medium of exchange), without anyone passing laws against it," said Ammous.
Ammous does not deny another fact, that not everyone uses Bitcoin as a form of money. But for him, Bitcoin does meet the criteria as a currency and currency and some people do use it every day.
"Bitcoin fulfills the function of money for the people who use it and it is freely chosen by the market," he stressed again.
Another advantage, according to Ammous, is the difficulty adjustment mechanism that examines blockchain network activity and changes the amount of computing power required to process transactions.
This is what ensures Bitcoin miners can continue to profit because, BTC is becoming increasingly rare.
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