SAIFEDEAN AMMOUS: We're going to get to a point where there's going to be 21 million bitcoins and that's it and there's nothing else that anybody can produce. This makes it more of a gold than gold.
Bitcoin improves on gold, Bitcoin's fixed supply means that it is the first liquid commodity or liquid asset ever invented that has a supply that is truly fixed. You can't make more of it. I think this is a point that is not emphasized enough about Bitcoin.
From an engineering perspective, it's decentralized and the fact that it exists as a neutral protocol that for all practical intents and purposes, nobody can really change.
MARTY BENT: I am Marty Bent, founder of tftc.io here for Real Vision today, sitting down with Saifedean Ammous, economist and author of "The Bitcoin Standard." Saife, how we're doing today.
SAIFEDEAN AMMOUS: Very good. Thank you so much for hosting me, Marty.
MARTY BENT: I'm very happy to be sitting down with you here today in a foreign land in Real Vision, but very excited about the conversation.
SAIFEDEAN AMMOUS: Likewise.
MARTY BENT: We're here to talk about the gold standard versus the Bitcoin standard. We've been having brief conversations about this leading up to this. I think the best way to start is to describe how the world came to a gold standard originally and how that got bastardized to an extent.
SAIFEDEAN AMMOUS: Yeah, I think the interesting thing I discussed in my book about the gold standard, my book is about the Bitcoin standard. However, about 70% of the book is dedicated toward discussing the monetary history and primarily, gold. I think learning about gold and the gold standard is extremely significant for Bitcoin for a couple of reasons we'll get into in a bit.
I think the interesting thing about gold is that it became a global monetary standard without anybody having to politically decide upon it. Governments recognized gold as money, but it was the market that chose it as money before governments recognize that and the choice of gold emerging as the global monetary standard was not a political decision. Political decisions recognize that the reality of the monetary choice.