The Bitcoin Standard: The Decentralized Alternative to Central Banking

Category: Economics
Author: Saifedean Ammous
This Month Reddit 10


by gizram84   2019-08-24

The short answer is that bitcoin derives it's value from being immutable. If a small group was able to change a critical consensus rule on a whim, then that coin is not immutable. Anything can be changed by a central team. You have no guarantee of future rules or behavior. So it's just like fiat money, worthless.

Also, once the block subsidy diminishes, you need fees to pay the miners for security. The shitcoin forks can only survive now because of inflation, and they have no long term plan to pay for security. The next halving will exemplify this, as they lose a large percentage of their miners.

The long answer is read this book:

by beowulfpt   2019-08-24

I like your comment. Fair enough. The main reason is a certain frustration due to reading incorrect claims that people repeat because they heard it before, but spent absolutely zero time validating.

I've had a few chats where I tried to educate and share but realized the other person never really researched it much and just kept repeating the same common myths over and over again. "It's a ponzi" "Tulips" "Miners control it" "Same as any other coin" "too slow for coffee" "Criminals" etc, etc without the slightest interest in putting some time to check the facts.

Now and then, someone appears and really wants to learn, which can be satisfying. I'm still learning a lot and also dismissed it as nonsense years ago (wasted time), but at least never claimed to be sure before researching - it was more of a "Meeehhh don't think so, seems nonsense" and that was it. it's fine to be skeptical, I am too, but I don't think it is fine to dismiss things so publicly with these claims, without putting any time into validating them. That is noise. Fake news.

Of course it doesn't help that the "Crypto" scene is full of scams and absolute nonsense. I'm not into "crypto" or "blockchain" in general anymore because with time I realized only BTC (the oldest, longest original chain) was worth taking seriously. All the other tokens/shitcoins are an absolute waste of resources in almost all cases.

If you're curious, I'd recommend checking out these three sources for a start, as they are technically competent and legit:

-Saifedean Ammous' book (mostly about money, but also partially about BTC)

-Andreas Antonopolous videos (half are technical, the rest a bit higher level)

-Jameson Lopp's list of resources (a mix of content)

The learning curve is steep, but very rewarding. After just a bit you won't be producing these posts anymore because they won't feel accurate. That doesn't mean BTC is flawless or guaranteed to succeed, it's still highly experimental, but certainly not the nonsense some claim it to be before looking into it.

by beowulfpt   2019-08-24

That is wildly incorrect. There are no crypto currencies that "are far, far superior". Unless you're looking at what their scammer founders tell you.

People don't flock to Bitcoin because it was the first, they flock to it because it is the most secure network and protocol by a HUGE margin. This is technical data, not an opinion.

But in the same way, many others avoid it because they feel they missed the gains and it became tacky. Totally unaware they're still very early. There is no "superior crypto". Do your own research.

by bluethunder1985   2019-07-21

thankfully we have bitcoin as an escape chute.

by beowulfpt   2019-07-21

Getting a % of the market currently in Gold or other long term store-of-value choices. Proven itself for over a decade of political, economical and technical attacks.

I think we're far from having it as a Standard, but expect BTC to be part of many portfolios in the next 5-10 years. IMO a lot of people are excessively optimistic about how long it will take, but others are being unwise by totally dismissing it just because there's a lot of nonsense/scams in that [young] market.

by beowulfpt   2019-07-21

If you call Bitcoin a ponzi scheme, you know nothing about Bitcoin, and you know nothing about ponzi schemes. . A Ponzi is something totally different, here's the definition.

BTC has none of the characteristics that define a Ponzi. It's curious how some people use that term, but it quickly shows they are repeating something they've been told by someone else, without doing their own research.

Puzzles me how in 2019 people keep repeating arguments like that instead of learning from any of the many good books out there. Even the Andrea Antonopoulous videos on YouTube have taught a lot of people.He also has books focusing on both the economy and the technology, and they're not only sold on paper (Amazon) but can also be downloaded for free.

In 2011 or 2012 I'd get the "Ponzi and tulips and beanies!" jokes, hell, I fell for them myself and got delayed needlessly. But with the historic data and information available now, man, it's just pure laziness to keep reporting financially and scientifically incorrect arguments. A bit embarrassing.

by beowulfpt   2019-07-21

Don't let people lacking vision slow you down. You'll regret it down the line. Read The Bitcoin Standard..

Same guys were making fun of Amazon's stupid idea in 1992 and saying it would go bankrupt "next year".

I've noticed that A LOT of BTC naysayers are people that are just trying to confirm their own bias and were too lazy or technologically/financially incompetent to research it properly, so the only way to defend their ego is by confirming it's a "bad idea". Most don't even know it properly and have never used it, but still think it is bad.

Do your own research, don't ask for advice. Not everyone has the vision. That includes some of the "pro-crypto" people. Some are scammers and will misguide you. Test everything, hold on to the good.

by [deleted]   2019-07-21

Yes, this is the best one:

It's a history of money from Yap stones to Bitcoin

by BinaryResult   2019-07-21

Read The Bitcoin Standard by Saifedean Ammous, it's a great introduction to bitcoin's deflationary "hard money" properties.

by thefiexpl   2019-07-21

Thanks for reading the piece.

It will be very interesting to see if it remains as dominant, or is superceded. I think the concept has something in it and think of it as my small hedge against very unusual states of the world. Found the Bitcoin Standard a very interesting read.

by raftoni   2019-07-21

You only need to read this book: The Bitcoin Standard: The Decentralized Alternative to Central Banking

by censorship_notifier   2019-07-21

The following comment by gizram84 was openly greylisted.

The original comment can be found(in censored form) at this link: CryptoCurrency/comments/b2x31m/-/eixqpia?context=4

The original comment's content was as follows:

> You should really read The Bitcoin Standard..

by slepyhed   2019-01-13

My suggestions:

  1. Check out and learn how to use it. You'll use the same credentials that you do on coinbase, but save a lot on fees.
  2. Don't bother with all the alt-coins.
  3. Start purchasing Bitcoin with each paycheck.
  4. Read "The Bitcoin Standard" ([ )
  5. Get a hardware wallet (I recommend Trezor) and start storing your Bitcoin on it.
  6. Research the benefits of decentralized exchanges, learn how to use one (I recommend Bisq), and if it meets your needs, start using it as soon as possible.
  7. Read "Mastering Bitcoin" ([ )
  8. Develop a long term outlook, don't worry too much about price swings.

From your post, it sounds like you might be interested in just trading. In that case, my suggestions won't help a lot. I think that the majority that try trading end up losing. If you do decide to buy/sell/trade, be sure to spend some time learning about trading, limits, stops, strategies, etc. Start small, win some, lose some, learn some, before going in big.

by eeeggg333   2019-01-13

The whole history of this plus many other currencies all the way up to bitcoin are laid out in this amazing book [

A must read for every crypto enthusiast

by slepyhed   2019-01-13

You're not too late. Check out this podcast episode for reasons why:

As far as what Bitcoin is, I recommend reading three books: The Internet of Money (Volumes 1 and 2) and The Bitcoin Standard.




Alternatively, watch all the videos you can find from the authors of these books, Andreas Antonopoulos and Saifedean Ammous.

by bitusher   2018-11-10


by bitusher   2018-11-10

Best podcasts or shows -

Best overview on why bitcoin is important and the economics behind bitcoin-

or better yet get this book :


and for a larger list of resources go here –

by bitusher   2018-11-10

Best podcasts or shows -

Best overview on why bitcoin is important and the economics behind bitcoin-

or better yet get this book :


and for a larger list of resources go here –

by beowulfpt   2018-11-10

Ignore the crypto bashing and read this to maximize your future returns. When everyone [inevitably] agrees and considers it standard, it will be too late to have maximum profits.

The jokes can always be added here and join ten (10) years of failed forecasts/threats. Remember: It's going to be most profitable when most people are unaware of it or considering it nonsense - anyone who lived through the internet in 1990-2000 knows what that means. Ignore the Luddites because BTC will still be here in 10+ years, long after their current cash cows are gone.