Bitcoin is the solution to fiat debt, claims Bitcoin Standard author Saifedean

  • 10 September 2019, Tuesday, 08:30

In a recent podcast by Preston Pysh, author and economics professor Saifedean Ammous explained how Bitcoin is the solution to get out of debt.

He said that inflation is a money supply phenomenon and not collapse in demand. He used Venezuela as an example and asserted that citizens of the country did not abruptly drop the demand for their national currency further highlighting that the supply is the root cause.

Ammous suggested that Bitcoin is the “technological solution to the political catastrophe that is fiat debt.” According to Ammous, detailed how digital gold grows as a hard monetary asset rather than a debt-based monetary asset which allows people to hold it without getting into debt as the value of the asset grows over time.

Furthermore, he suggested that the value or the demand for the dollar would not collapse very soon as people are still subjected to pay taxes and bills. However, he believes that once people start holding Bitcoin and use it as a store of value, they wouldn’t have to live off of debt as they would no longer be in a situation where they have no money.

Additionally, he suggested that this might be great for Bitcoin as it would influence adoption of Bitcoin as people would rely on digital gold to pay off debt instead of using dollar loans. He said,

“So what we witness is the decline in the creation of debt and credit and dollars, which is essentially the same thing because the Fiat monetary system is creating dollars every time it creates debt and vice versa. So we’re effectively deflating that debt bubble slowly, or you can say, you know, the house of cards is being undone.”

He concluded by suggesting that the rise of Bitcoin wouldn’t actually cause the decline of the dollar but poses as an upgrade in the economy.