“The Bitcoin standard” by Saifedean Ammous

The author 🖋

Saifedean Ammous is an author, economist, PhD in Sustainable Development, professor of economics at the Lebanese American University and a member of the Center on Capitalism and Society at Columbia University.

His work on monetary economics and sound money is considered to be foundational in the space of Bitcoin.

Key takeaways 🎓

1. The history of money

Before money, people had to trade directly (also known as “bartering”), which was hard and often unfair.

Money was invented to solve this problem and simplified transactions.

Ammous explains how money has evolved over time - from primitive forms like shells or beads to precious metals like gold or silver to government-issued currencies - and how they have impacted economies.

2. What makes Bitcoin special

Bitcoin's decentralized nature, limited supply, global liquidity, perfect real-time auditability and censorship resistance make it uniquely suited to be money.

And Ammous makes a great argument why these features make Bitcoin a superior form of money compared to traditional currencies.

3. Good money helps people

Historically, sound monetary systems have contributed to societal prosperity and stability.

In other words, money that keeps its worth is good for people.

Ammous is certain Bitcoin can be this kind of money.

Closing thoughts 🧠

Ammous makes a strong case for Bitcoin as a future global reserve currency by protecting people against inflation, providing financial sovereignty and offering a more transparent monetary system.

The book definitely changed my perspective on what money is and what it could be.