Saifedean Ammous, best-selling author of The Bitcoin Standard, he said Bitcoin could eliminate demand from several safe haven assets like gold, real estate, and bonds.
In a recent SALT Talk video, Ammous explains how Bitcoin could emerge as the highest-value store asset.
“I think blackening gold is a realistic goal and turning gold into industrial metal, that can happen so that Bitcoin can consume that market. It will not mean that gold will go to nothing obvious. It will only become an expensive industrial metal.
You also have to remember that many more global markets are basically looking for a store of value. They are not looking for investments that generate returns … Many people buy homes they don’t really need because that beats inflation and many people invest in all sorts of things like bonds for example.
Bitcoin could eat into the real estate market. It could eat into the market for bonds, so these things could lose a great deal of demand that comes to them because people don’t have a solid store of value that can underpin your portfolio that you don’t take risks with. Bitcoin, if it grows into this kind of digital gold, it can offer that to people. So you can imagine then it will reduce demand for other markets, and then the sky is the limit. “
Ammous believes that the apparent disappearance of Bitcoin’s nickname creator, Satoshi Nakamoto, is good for Bitcoin because it adds credibility to its decentralized, uncontrollable nature.
“In my mind, the disappearance and the fact that the person who created it is probably an integral part of what makes Bitcoin work…
I think the fact that nobody was in charge and the project continued to survive is what makes it extremely difficult because that is what makes the monetary policy set in stone. This is what gives it digital value because this is a network that is out of anyone’s control. There is no one out there who can take over this network and change the money supply … So I think the disappearance of the creator was a hugely important factor in the growth of Bitcoin in a way that it had become neutral and being controlled by no one. “
The author says that Bitcoin should not be thought of as a major safety net of a poor financial system, but as a system that is legitimately better.
“We must stop thinking about Bitcoin in terms of ‘This system is going to collapse and Bitcoin is the only solution.’ I think we need to think that this is just the better technology. This is only the more advanced system and is likely to take the lead simply because a political settlement that is accessible and verifiable to anyone in the world at very low cost is a far more powerful proposition than having to go through institutions political every time you want to send and receive money and to go through political organizations that have a monopoly and can depreciate the currency. ”
I.
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