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Edited by Ritu13 at 22-12-2023 01:37 PM
Today, I'd like to talk to you about virtual currency. Have you read Saifedean Ammous's book "The Bitcoin Standard"? This book not only immerses readers in a sea of knowledge but also opens up a fresh understanding of currency, economics, and Bitcoin (BTC) for me. It's not just a delightful read but also a source of profound insights and valuable lessons. I'd like to share three lessons I gained from it with you!
Lesson One: Evolution of the Medium of Exchange
"The Bitcoin Standard" delves into the challenges of transferring economic value across time and space, explaining the evolution of the medium of exchange. Barter trade is impractical in modern society, and the emergence of money as a medium of exchange solves this problem. The book emphasizes the importance of the stability of money in promoting economic stability and confidence in transactions. Bitcoin, as a decentralized, limited-supply, and mathematically-based digital currency, is seen as a unique solution to the deficiencies of traditional precious metals.
Lesson Two: Importance of Sound Money
Bitcoin is considered the only sound money in "The Bitcoin Standard." The book explains the differences between sound and unsound money, highlighting the importance of sound money with stable value that encourages saving and investment. This provides businesses with opportunities for long-term planning, fostering robust economic development. Bitcoin, through its algorithmic design and limited supply, successfully achieves the scarcity of currency, becoming a stable store of value not threatened by inflationary pressures.
Lesson Three: Key Attributes of Money
The book delves into the key attributes of money, including durability, portability, divisibility, recognizability, and scarcity. Bitcoin's uniqueness as a digital currency stems from its algorithmic design, decentralized nature, and fixed supply limitation. As a distributed software, Bitcoin allows secure, third-party-free value transfer, making it an ideal choice to overcome the limitations of traditional currencies and gold.
The purpose of this book is not to promote Bitcoin but to help readers understand the economics of Bitcoin, providing a wise understanding for its use. For those considering investing in Bitcoin, this book is an indispensable read that will guide them to a more comprehensive understanding of the essence of Bitcoin and enable them to make informed investment decisions. |
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Post time 23-11-2023 10:09:38