The Bitcoin Standard by Saifedean Ammous: The Decentralized Alternative to Central Banking. Here’s the summary, reader reviews and direct access to the book.
The Bitcoin Standard, here’s a comprehensive, authoritative exploration of bitcoin and its place in monetary history.
Discover an exploration of the history, possibilities and misconceptions surrounding Bitcoin.
Saifedean Ammous – biography:
Saifedean Ammous is a renowned economist and bestselling author recognized internationally. In 2018, Ammous penned “The Bitcoin Standard: The Decentralized Alternative to Central Banking,” a widely acclaimed book on bitcoin that has been translated into 37 languages. Following this success, in 2021, he released “The Fiat Standard: The Debt Slavery Alternative to Human Civilization,” available in 26 languages. Continuing his literary contributions, Saifedean published “Principles of Economics” in 2023, a comprehensive textbook following the Austrian school tradition in economics, which has been translated into 14 languages.
Beyond his written works, Saifedean conducts courses on bitcoin economics and the Austrian school tradition in economics via his online learning platform, Saifedean.com. Additionally, he hosts The Bitcoin Standard Podcast.
Prior to his authorial pursuits, Saifedean served as a professor of Economics at the Lebanese American University from 2009 to 2019. He holds a PhD in Sustainable Development from Columbia University, a Masters in Development Management from the London School of Economics, and a Bachelor’s degree in Mechanical Engineering from the American University of Beirut.
Bitcoin offers a wide range of interaction possibilities, from decentralized trading to direct investment and mining projects, but in all cases, it’s important to know the fundamentals.
The Bitcoin Standard – summary:
When a pseudonymous programmer introduced “a new electronic cash system that’s fully peer-to-peer, with no trusted third party” to a small online mailing list in 2008, very few people paid attention. Ten years later, and against all odds, this upstart autonomous decentralized software offers an unstoppable and globally accessible hard money alternative to modern central banks. The Bitcoin Standard analyzes the historical context to the rise of Bitcoin, the economic properties that have allowed it to grow quickly, and its likely economic, political, and social implications.
While Bitcoin is an invention of the digital age, the problem it purports to solve is as old as human society itself:
transferring value across time and space.
Author Saifedean Ammous takes the reader on an engaging journey through the history of technologies performing the functions of money, from primitive systems of trading limestones and seashells, to metals, coins, the gold standard, and modern government debt.
Exploring what gave these technologies their monetary role, and how most lost it, provides the reader with a good idea of what makes for sound money, and sets the stage for an economic discussion of its consequences for individual and societal future-orientation, capital accumulation, trade, peace, culture, and art. Compellingly, Ammous shows that it is no coincidence that the loftiest achievements of humanity have come in societies enjoying the benefits of sound monetary regimes, nor is it coincidental that monetary collapse has usually accompanied civilizational collapse.
With this background in place, the book moves on to explain the operation of Bitcoin in a functional and intuitive way.
Bitcoin is a decentralized, distributed piece of software that converts electricity and processing power into indisputably accurate records, thus allowing its users to utilize the Internet to perform the traditional functions of money without having to rely on, or trust, any authorities or infrastructure in the physical world. Bitcoin is thus best understood as the first successfully implemented form of digital cash and digital hard money. With an automated and perfectly predictable monetary policy, and the ability to perform final settlement of large sums across the world in a matter of minutes, Bitcoin’s real competitive edge might just be as a store of value and network for the final settlement of large payments―a digital form of gold with a built-in settlement infrastructure.
Ammous’ firm grasp of the technological possibilities as well as the historical realities of monetary evolution provides for a fascinating exploration of the ramifications of voluntary free market money. As it challenges the most sacred of government monopolies, Bitcoin shifts the pendulum of sovereignty away from governments in favor of individuals, offering us the tantalizing possibility of a world where money is fully extricated from politics and unrestrained by borders.
The final chapter of the book explores some of the most common questions surrounding Bitcoin: Is Bitcoin mining a waste of energy? Is Bitcoin for criminals? Who controls Bitcoin, and can they change it if they please? How can Bitcoin be killed? And what to make of all the thousands of Bitcoin knockoffs, and the many supposed applications of Bitcoin’s ‘block chain technology’?
The Bitcoin Standard is the essential resource for a clear understanding of the rise of the Internet’s decentralized, apolitical, free-market alternative to national central banks.
“I have spent my entire career studying works about monetary theory, the gold standard, comparative monetary systems, central banks, and proposals for monetary and financial reform. I would rate a tiny fraction of the books I have read about any one of these topics as excellent. Dr. Ammous’ book, The Bitcoin Standard, contains an excellent treatment of all these topics in addition to one of the few enlightened and enlightening accounts of Bitcoin that I have come across. It is essential reading for anyone interested in learning the role Bitcoin could play in a future regime of free and sound money.”
―Joseph Salerno, Academic Vice President, Mises Institute
“This book blew my mind; it is a work of genius. It put together the technical, economic, motivational and related issues around Bitcoin better than anything I’ve seen. The best compliment I can give this book is that I read it and I decided to buy $425m of bitcoin. It was the most impactful on our way of thinking in Microstrategy and it made us want to invert our balance sheet to base it on a bitcoin standard.”
―Michael Saylor, cofounder, chairman, and CEO of Microstrategy
“Dr. Saifedean Ammous gave us the definitive book on digital money with The Bitcoin Standard, a must-read for anyone interested in monetary tech and worried about ruinous fiat regimes. Now his online academy gives students access to the man himself, an opportunity to learn economics as it should be taught: at market prices, online, with no wasted time or material. Ammous is a brilliant and concise teacher of Austrian school economics, and I cannot recommend his courses highly enough.”
―Jeff Deist, President, Mises Institute