Saifedean Ammous Highlights Bitcoin’s Fixed Supply as a Key Advantage
- Ammous argues that Bitcoin’s fixed supply allows rising demand to increase its purchasing power.
- He cites World Gold Council data indicating gold stocks grew by an average of about 1.7% annually over the past 25 years.
- Bitcoin’s realized volatility has decreased, now only 1.52 times higher than gold’s equivalent measure.
- Currently, Bitcoin accounts for approximately 1% of global cash balances, with expectations for this share to rise.
- Ammous predicts that increased market capitalization and liquidity will lead to lower Bitcoin volatility as it matures.
Ammous challenges the notion that a monetary system must expand its supply when demand rises, suggesting that Bitcoin’s predictable issuance enhances its potential as a global monetary asset.
With Bitcoin currently making up about 1% of global cash balances, Ammous believes its value growth may stabilize over time as it evolves into a more widely accepted form of money.(Source)
