Bitcoin will become ‘less volatile’ and larger than gold: ‘The Bitcoin Standard’ author
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Saifedean Ammous, author of "The Bitcoin Standard," stated that Bitcoin already functions as a medium of exchange and that its volatility impact is expected to decrease over time. Ammous argued Bitcoin will become less volatile than gold and surpass gold's market capitalization. His comments responded to Professor Lawrence H. White’s claim that Bitcoin’s fixed supply causes excessive volatility, limiting its use as a reliable medium of exchange.
Why it matters
Ammous’s perspective suggests Bitcoin’s role as money is currently unfolding despite volatility and limited payment use. The debate over Bitcoin’s volatility and its potential to outgrow gold’s market cap is significant for understanding Bitcoin's future role as a global monetary asset. The source does not elaborate on broader market or user impacts.
Key context
Ammous counters White’s argument from the book "Better Money: Gold, Fiat, or Bitcoin?" which criticizes Bitcoin’s fixed supply for causing price volatility and limiting transactional utility. Industry voices like Bitwise’s André Dragosch and Blockstream CEO Adam Back have also predicted Bitcoin will rival or surpass gold in market cap and monetary hedge use due to factors like fiat inflation and financial instability.
Key numbers and entities
Saifedean Ammous (author, "The Bitcoin Standard"), Professor Lawrence H. White (author, "Better Money: Gold, Fiat, or Bitcoin?"), André Dragosch (Bitwise head of European research), Adam Back (Blockstream CEO). Bitcoin’s current market capitalization is $1.6 trillion, while gold’s is near $29 trillion. Predictions include Bitcoin reaching $1 million by 2029, potentially matching gold’s market cap.
What remains unclear
The timeline and mechanisms by which Bitcoin’s volatility will decline relative to gold are not detailed. How Bitcoin’s increasing use as a payment method will unfold remains uncertain. The source does not address policy or regulatory effects on this anticipated evolution.