Check out The Once BITten Podcast Episode Page & Show Notes. But it is looking at it from the lens of somebody who has moved on to Bitcoin using the analytic lens of Bitcoin and how Bitcoin works, applying the same framework for understanding the Fiat system and how the Fiat systems works. 0 3. How can the government keep CPI statistics down? He is also author ofThe Fiat Standardand an upcoming book on the principles of economics. This is kind of the big misconception that people have today that the Great Depression happened because of the gold standard. There is liberation in understanding that you are your own worst enemy and your own worst ally How so? 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.". My first book, The Bitcoin Standard, was a study of the economic system around Bitcoin, and then as a follow-up, I decided to basically do the sequel studying the Fiat economic system, which is the dominant economic system that we have today, looking at it from the perspective of an engineer and an economist looking at a monetary system. How can the government make you think that inflation isnt very high? Saifedean teaches outside of mainstream academia Here is why: Its demoralizing to realize you could have spent your time producing stuff that people value and pay for, Being out in the market, getting feedback from consumers, is at the heart of entrepreneurship Academia deprives you of that, The Internet allows you to learn things directly from anywhere, people will find ways to explore these efficiencies, Ultimately, education is not about grades or certificates, education is about learning things that are useful , Saifedean is working on a new Austrian Economics textbook: Principles of Economics, The goal is making the work of Austrian economists like. If you look at the prices of real foods, they are going up. He wrote two other books titled The Fiat Standard and Principles of Economics. Saifedean Ammous, the author of The Bitcoin Standard, is also the founder and CEO of. Use networking and influencers rather than conventional advertising and marketing to drive expansion. Started in 2017, Techiegamers is now home to over 500,000 visitors every month and has been featured on websites such as the LA Times, Yahoo, MSN and many more. As a result, they develop the mind-set of spending on useful things, Economical and personal decision making shifts towards building for the future and people cooperating with one another, Bitcoin lowers peoples time preference as they start to appreciate the opportunity cost of giving away something that is scarce, even if it is volatile, People share stories of quitting addictive behaviors like smoking or drinking and putting the money into Bitcoin instead , A hangover is Satoshis way of reminding you that you couldve been buying Bitcoin instead with the money that you spent on alcohol.. Save that money and buy more bitcoin. Thats when I really thought, Theres a lot of red flags here, things dont really make a lot of sense the way that they are laid out, and I think the fascinating thing was to just watch how at Columbia and in the media and with my university professors, the only kind of perspective that you see is just rationalizing the decisions of the federal reserve, you know? Saifedean Ammous: That then left The Bank of England with a problem, which is that it had a lot more notes outstanding than it had gold to back them up. Get notified of new articles from Joakim Book and AIER. Free shipping for many products! And are all these institutions and their bureaucrats really funded by their central banks? If we wish to know more about his career and work, we can go through his site, https://saifedean.com/. This, of course, led to rises in prices. In 2017 and 2019, The Bank of England released some information that had been hiding in their basements for about a century. Heralded by promises for the long-awaited economic empowerment of digital art and the paradigmatic shift of creative production, the art market’s fusion with blockchain technologies and the crypto economy has polarized opinions among artists, cultural workers, and economists. Saifedean Ammous is author of the seminal book,The Bitcoin Standard, which has been translated into dozen of languages. (949) 799-2165. Canola oil is industrial waste. Governments do not just print currencies and hand them out to societies that accept them as good money.. Even still, the US government manages to raise tax revenue to the tune of $4 trillion a year, almost the full extent of the Feds balance sheet increase from August 2019 until February 2022. This website is intended to showcase Dr. Ammous research in studying the economics of bitcoin, and nothing in it should be construed as investment advice. As Scott Sumner writes, and many other monetary economists have pointed out, The Fed controls the nominal quantity of money in the US economy. Ammous said that even though altcoins have emerged that may have possessed superior technology Later that year, he was promoted to an Assistant Professor of Economics in his main job at Beirut. Furthermore, he was born in Palestine and grew up in the city of Ramallah. I was interested in Bitcoin pretty early on. Specifically, everything wrong in American life stems from the money-printing that is under the governments control. 304. In fact, it turns out that the best way to navigate the Fiat system is to be short Fiat, which is effectively to borrow Fiat, to have your liabilities denominated in Fiat. @saifedean At a price over $1m, bitcoin is worth more than all USD M1 supply. He holds a masters degree from the University of Oxford and has been a visiting scholar at the American Institute for Economic Research in 2018 and 2019. It really only started to make sense for me towards the end of my Ph.D. when I started coming across the work of what is known as the Austrian School of Economics, which is different really from the mainstream views on economics, but I find it a far more powerful tool and mechanism for understanding the world. You cant just be rich; you cant just be financially secure. Ask yourself, are you delaying your long-term goals because you are busy with daily activities, rather than investing in things that matter to you in the long run? This raises the following question: Wheres the government benefit that it can so freely dispose of, all those infinite credit lines and fiat money that fuel the worlds stupidity? Show this thread. Because, if they did, there was a lot more pound notes than there was gold backing them. Saifedean Ammous: This is really, I think, the powerful realization that allowed me to understand how this monetary system works after studying it for quite a while, which is that by analogizing it to Bitcoin or gold, you know with gold and Bitcoin, there is a mining process where new Bitcoins are produced according to a schedule or with gold, people dig and they find gold and they put it on the market but with Fiat, theres no mining. The reason that this Fiat System didnt collapse and get replaced by gold, is that you just cant send gold around the world. Saifedean Ammouss age has not been disclosed on any social media platform, so his age remains a mystery. Thats why it makes sense for you to take out the loan for a million dollars to buy a million-dollar house because, over time, the value of the loan is going to decline in real terms, because the value of the money declines, and because the bank is making money. he's trying to appeal to authority. He is a bestselling author, cryptocurrency advocate, professor and podcaster. So, prices had practically doubled by the end of World War I, which was a massive problem for the British economy and that inflation, that price inflation, that happened was a big problem for Britain after the war because Britain wanted to go back on the gold standard, but they couldnt go back from the old exchange rate. WebBitcoin was created to be a store of value (yes, perceived value, just like fiat, gold, etc., yet as long as it has perceived value then it is worth having). As such, it is more resistant to wild inflation and corrupt banks. What is the Austrian School of Economics? The Bitcoin Standard is a great book. What's the point of telling us (twice) about your doctorate? He creates new knowledge thats valued by his customers, because it helps them to think betterand better informs their actions. The best compliment I can give this book is that I read it and I decided to buy $425m of bitcoin. The Times 03/Jan/2009 Chancellor on brink of second bailout for banks. But where does fiat money really come from? WebThere is still gold but most peoples net worth is still in local currency. Ammous holds a Ph.D. in Sustainable Development from Columbia University. Trump's Economy: Boom Times or Dangerous Bubble? Then, he returned to Lebanon to work as a lecturer in economics for the Lebanese American University. Filmed on October 9, 2019 in New York. You should spend only the money that you have, but it turns out grandma was wrong. Join as member+ and also attend weekly seminars discussing the course & hosting special guests for When I heard Saifedean was preparing a book about bitcoin I had high hopes. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio. Saifedean Ammous prefers to live a private life and has not exposed his family details in the media. Our goal at Economics For Business is to be a knowledge and tools provider for this entrepreneurial surge. WebBitcoin 101: Special Guest Morgen Rochard, CFA. The sequel to The Bitcoin Standard, applying its framework to analyzing the current monetary system. You see it in architecture, we build buildings that fall apart in 30 years whereas, in the 19th century, they built buildings that last 300 years. The book was a pioneer in explaining bitcoins value proposition as the hardest money ever discovered, and the only working alternative to national central banks for international payments. Ammous specifically cited how fiat inflation is used primarily for the needs of the government, saying that The cost of fiat is currently 3.5% of all global wealth, and is used to finance government parasites, wars, and monopoly banksters. Although bitcoin can be used to purchase things in transactions, it really doesnt matter if that happens or not. With money, with a hard money that can hold onto value, you have a reliable way of providing for yourself tomorrow, so you can put your money, you can put your wealth, you can put the value that you produce in the hard money. Heralded by promises for the long-awaited economic empowerment of digital art and the paradigmatic shift of creative production, the art market’s fusion with blockchain technologies and the crypto economy has polarized opinions among artists, cultural workers, and economists. The next step was and that The Bank of England effectively started confiscating the gold from people in England and it was a systematic process over five years from 1914 to 1919 where post offices and banks were told to take payment in gold and only give payment in banknotes in order to try and reduce the amount of gold in peoples hands and take the gold for the Bank of England to allow the Bank of England to keep the exchange rate between the banknotes and gold fixed and have to finance the war effort. For me, the importance of Bitcoin, its the hardest money ever because its going to become harder than gold over the next few years and that its annual supply growth rate is going to drop below this annual supply growth rate of gold. Economist Saifedean Ammous, author of the hotly debated 'The Bitcoin Standard: The Decentralized Alternative to Central Banking,' joins Real Vision for an in Im going to continue to go down this black hole of information and try to figure out economics. Was there one or two issues that really stood out to you that go, Man, I really want to do more research on this because it doesnt make sense?. Most importantly, regime higher education was customer-less: it did not provide value for customers, because that was not its purpose. Moving onto the Saifedean Ammous wife, he is a married man. He upgraded to the Bitcoin Standard by exiting academic teaching and switching to entrepreneurial knowledge sharing. He is also author of The Fiat Standard and an upcoming If we wish to know more about his career and work, we can go through his site. Saifedean is an experienced guy and has worked in different companies. How Much Saifedean Ammous Worth? On the other hand, if you just pay for that house by debt, not only are you not having to save and therefore not having to suffer from inflation, youre actually benefiting from the inflation, because when the bank is giving you those million dollars, the bank has effectively made a million dollars out of thin air. Thats what allows us to invest capital for the future and accumulate more and more capital, and that results in an increase in our productivity. They kept kicking the can down the road and trying to prevent people from redeeming their gold and eventually, they gave up on the gold standard in 1931, and this is the kind of perverse part here, which is they blamed the gold standard for their failures for all of the economic problems that were caused by abandoning the gold standard. When you pay the money back to the bank, that money has gone out of circulation, and it goes out and so the money supply declines. Ammous specifically cited how fiat inflation is used primarily for the needs of the government, saying that The cost of fiat is currently 3.5% of all global wealth, and is The Bitcoin Standard is an iconic book that thoroughly explains the value of Bitcoin, and the one who wrote it is economics expert Saifedean Ammous. And they kept on kicking the can down the road and its survived for a century. WebSaifedean Ammous is Assistant Professor of Economics at the Lebanese American University. WebAbout Bitcoin Quotes This is a curated list of quotes that highlight key ideas in Bitcoin and related areas. Genuinely think Blockchain is going to change the world. Success isnt judged in a free market of ideas where everyone puts their work out in the open where people put it to use.