What is the Bitcoin Standard about?
From the first rock currencies through the Victorians’ obsession with gold to today’s youngster on the block — digital virtual currency. The Bitcoin Standard (2018) recounts the history of money. Bitcoin, in the opinion of economist Saifedean Ammous, may very well be the future as we rediscover the benefits of sound money. Similar to the gold reserves of the past. It possesses certain qualities that make it the ideal choice to serve as an uncontrollable form of exchange. And that’s terrific news if we wish to end the boom-bust cycle, stabilize our economy, and promote growth.
About the Author
The Bitcoin Standard: The Decentralized Alternative to Central Banking, is written by Dr. Saifedean Ammous. A best-selling, ground-breaking analysis of bitcoin’s economics that has been translated into 36 languages. The book was a trailblazer in articulating the value proposition of bitcoin. It states Bitcoin as the most difficult form of money ever found. The only viable alternative to national central banks for cross-border transactions. He is also the author of the upcoming economics books Principles of Economics and The Fiat Standard. Dr. Ammous is the host of The Bitcoin Standard Podcast. He teaches economics to tens of thousands of students throughout the globe via his online learning site saifedean.com.
The economics of biofuels and other energy sources were the focus of Dr. Ammous’ doctoral thesis, which he completed at Columbia University. Additionally, he has a Bachelor of Engineering from the American University of Beirut and an MSc in Development Management from the London School of Economics.
Why should you read Bitcoin Standard?
This book does not purport to cover every technical facet of bitcoin. However, the 5minutecoins team advises reading this book for the reasons listed below.
Its first three chapters lay forth a specific theory and financial background that appears to be related to Greaber’s work. Ammous, however, retells the common barter-myth Austrian school strategy. Antal Fekete’s theory of the stock-to-flow ratio, which describes how a monetary commodity originates, given particular attention. A limited and incomplete history of money that ignores the pervasive roles of lending and governance that extensively covered in more thorough presentations of monetary history.
The next four combine political analysis, a history of the gold standard and post-gold standard era, and a sort of cultural anthropology of how time preference and “sound money” impacted society.
Ammous appears to focus more on illuminating Maynard Keynes and “Keynesian Economics.” In an effort to portray Keynes as a small aristocracy lazy paedophile, he also seems to be doing some character assassination on Keynes personally. Although this may have gone a bit too far, I do agree with some of the criticisms of Keynesian economics.
The Bitcoin Standard against Keynesian Argument
Keynes contended that lengthy stretches of high unemployment might result from a lack of general demand. The aggregate of four factors determines the output of products and services from an economy:
- Government export
One of these four factors must be the source of any growth in demand. However, as expenditure decreases during a recession, powerful factors frequently depress demand. Consumer confidence frequently suffers during economic downturns from uncertainty, which makes people spend less, particularly on luxuries like a home or automobile. Businesses may spend less on investments as a result of customers spending less since there is less of a need for their products.
The Keynesian School of Economics and how it varies from the Austrian School of Economics are extensively discussed in the book. The Austrian School of Economics, whose members felt that depressions and surges are a part of the natural cycle and that government involvement simply makes the recovery process worse, is largely responsible for the ideas and concepts on which Bitcoin is founded. There are questions over whether or not governments can control the business cycle through monetary and fiscal policy.
We believe that the book makes a good faith effort to describe how the Austrian School of Economics and Keynesian Economics differ from one another. More than anything else, it will increase your understanding of the distinctions and inspire additional inquiry.