Dr. Ammous, author of “The Bitcoin Standard,” explained how fiat money has hidden costs and why Bitcoin represents the next generation of money
Detractors of Bitcoin often point to its costs — namely in the form of electricity used in proof-of-work mining and its perceived impact on the environment — as reasons for why it will never be a sustainable alternative to traditional fiat currency. These detractors often believe that Bitcoin is fundamentally unscalable, or more likely, come from the power structures that fiat currency has enabled, such as government or centralized financial institutions.
In his presentation on the main stage of Bitcoin 2022, Dr. Saifedean Ammous delivered a presentation meant to underscore the invisible costs of fiat money, and how it has been used for centuries to economically oppress the average citizen of a fiat-based economy. Dr. Ammous has long been a supporter of Bitcoin, and has written “The Bitcoin Standard” and “The Fiat Standard,” both of which have helped educate numerous individuals about the advantages of Bitcoin and the corruption that is ingrained in most fiat states.
Dr. Ammous started his speech by focusing on inflation and how using fiat money helps back a system that is inherently unequal. Dr. 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.”
He followed up by citing how fiat money often helps those who are already rich, and who have the ability to store their wealth in hard assets such as real estate, and often preys on the poor. He added that “fiat parasites who are always talking about inequality, like Elizabeth Warren, Thomas Piketty, and WEF global leaders never mention this.” It certainly seems as if the very politicians and leaders who preach for a more equal system are rather enabling and backing an economic model that is predatory on the very people they pledge to help.
Dr. Ammous then brought up a little-talked-about consequence of using fiat money: its impact on the health and nutrition of its users. He argued that governments often encourage their citizens to “eat their sponsor’s industrial waste” as a cheap alternative to organic and high-grade essentials. He also cited fiat’s impact in scientific reporting, especially in energy, saying that “fiat scientists are telling us that windmills, a sixth-century technology, is what is going to be needed for the future. This is just an inflation cover-up.” Of course, it is often these very same fiat scientists who attack Bitcoin over its sustainability, especially on ESG grounds.