- Saifedean Ammous said Bitcoin is a politically neutral system in which politics and money are fully separated, and that it will ultimately prevail.
- Ammous pointed to the inflation risk in dollar-based assets and argued that Bitcoin could become a global currency because of its scarcity and transparency.
- He said buying Bitcoin is like buying startup shares, predicted it would become the best form of money, and said its use in South Korea would increase if it were not subject to taxes.
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The World Ultimately Bears Dollar Risk
Bitcoin Doesn’t Come at the Expense of Other Countries’ Currencies, Says The Bitcoin Standard Author Saifedean Ammous
“Bitcoin is a neutral system, divorced from politics. In the end, Bitcoin will win.”
Saifedean Ammous, author of The Bitcoin Standard, made the remarks on April 23 at a global economy and finance conference. He said Bitcoin does not come at the expense of other countries’ currencies or erode their wealth. It represents a complete separation of politics and money, he said.
Ammous is a prominent Bitcoin maximalist who has taken a bullish view of the cryptocurrency’s long-term value. He earned a doctorate in sustainable development from Columbia University, taught in Lebanon, and now works as a full-time writer. He also served as an economic adviser to El Salvador after the country adopted Bitcoin as legal tender.
He argued that government-issued currencies are inherently unstable. As US dollars spread around the world, other countries are forced to absorb US risk, he said. When the US prints money, it is effectively exporting inflation. Problems in dollar-based assets then become a global issue.
Ammous said Bitcoin’s scarcity and transparent transaction records could allow it to function as a global currency. He compared Bitcoin to gold. A neutral asset that is not controlled by a central bank or a government is important, he said, adding that if monetary policy were applied to Bitcoin, inflation could be reduced to zero.
He also argued that if Bitcoin became a global currency, wars sparked by decisions made by individual countries, such as a war with Iran, would become less common. Unlike the current monetary system, in which governments can issue money without limit, a Bitcoin-based system would constrain the cost of war. When gold was used as money, countries fought until they ran out of gold, he said. Starting a war should itself be difficult.
Ammous also said Bitcoin has already shown significant staying power. Many politicians and financiers said Bitcoin would struggle to succeed, but what matters is that it has survived, he said. Its volatility is also declining. Buying Bitcoin is like buying shares in a startup, he added, predicting it would eventually become the best form of money.
Asked by Kang Hyoung-gu, a professor at Hanyang University, what South Korea would need to institutionalize Bitcoin, Ammous pointed to taxes. South Korea has introduced regulations that are friendly to digital assets, he said. If the country does not impose taxes, people will make broader use of Bitcoin.
Park Si-on, Hankyung.com reporter ushire908@hankyung.com
