Author: Dai Xinsheng; Source: Airdrop Reference

The current price of Bitcoin fluctuates around 84,000, which is very dull and boring. If you have invested according to the DCA method introduced in this article, then price should not be the most important issue for you. On the contrary, we need to continuously improve our cognition and strengthen our beliefs so that we can take Bitcoin more stably and for longer.

Reading is undoubtedly the fastest way to achieve self-improvement. Starting today, let’s read a book together, “The Bitcoin Standard”, the translation of traditional Chinese is “Bitcoin Standard” and the translation of simplified Chinese is “The Future of Currency).

I prefer the name "Bitcoin Standard" because it can quickly contrast with the historical gold standard and help us understand the core value of Bitcoin. Compared with concepts like "standard" or "future", the "bitcoin standard" can better highlight the potential of Bitcoin as the cornerstone of the global new monetary system. After the publication of "Bitcoin Standard" in 2018, it quickly became one of the most popular Bitcoin economics works in the world, and was translated into 38 languages, affecting countless investors, scholars, entrepreneurs, and even decision makers.

1. How big is the impact of "Bitcoin Standard"?

Now, The Bitcoin Standard is a must-read classic for the global Bitcoin community. The profound impact of this book is reflected in:

It makes enterprises and institutions consider Bitcoin as a long-term reserve asset;

It makes it realize that Bitcoin may become the global reserve currency in the future;

It allows individual investors to build beliefs and insist on long-term holdings in short-term fluctuations;

It drives BitMonetary economics has become a real field of academic research.

Let's talk about it one by one.

1.1 Strategic turn of institutional investors: After the publication of Strategy (formerly MicroStrategy), more and more institutional investors began to seriously consider the long-term value of Bitcoin. The most famous case is Strategy CEO Michael Saylor, who resonated deeply with the monetary attributes of Bitcoin after reading this book.

In 2020, Sailer decided to let Strategy purchase Bitcoin as a reserve asset. So far, the company has become the world's largest listed company Bitcoin holder, and currently holds 499,000 BTC, see the figure below;

Saler not only actively promotes the "bitcoin standard" corporate strategy, but also encourages other companies and institutions to allocate Bitcoin.

He has repeatedly stated that "Bitcoin Standard" is a key reading material for him to establish his belief in Bitcoin investment, and recommends all entrepreneurs and investors interested in Bitcoin to read it. I have conducted an in-depth analysis of Sailer's transformation in "Bitcoin Dividend".

Seller's actions not only made Strategy the listed company with the most holdings of Bitcoin, but also triggered a trend of institutional investment in Bitcoin. Companies such as Tesla and Square (Block) have begun to include Bitcoin in their balance sheets.

The theory of "Bitcoin Standard" not only affects corporate strategies, but also has a substantial impact on it.

1.2's real impact: El Salvador's Bitcoin fiat currency experiment

In 2021, El Salvador became the first in the world to adopt Bitcoin as a fiat currency. The country referred to the views of "Bitcoin Standard" in the decision-making process and invited Amus to serve as an economic adviser to provide advice on Bitcoin's level applications.

Salvador President Nayib Bukele used Bitcoin as a currency to promote the global de-dollarization process;

The country launched Volcano Bonds and Bitcoin wallet Chivo, trying to incorporate Bitcoin into the fiscal system.

Salvador's decision has attracted global attention, and some developers have begun to think about the feasibility of Bitcoin as a fiat currency. Although it still faces challenges, it sets a historic precedent-Bitcoin is not just an investment asset, it is becoming a financial instrument of grade.

1.3 Influence mainstream economics and discussions

"Bitcoin Standard" not only influenced enterprises and, but also became an important topic in global economics and discussions. US Congressman Warren Davidson praised the book as "one of the best books in recent memory" and quoted its views many times in Congress discussions; many traditional economists began to re-examine the economic significance of Bitcoin, and the Austrian school's free market economic theory has gained more attention;

As a result, many traditional economists began to re-examine the economic significance of Bitcoin, and the Austrian school's free market economic theory has also gained more attention;

This impact is not limited to the cryptocurrency circle, but expands to the wider financial, and academic fields, making Bitcoin economics a formal field of research.

1.4 The condensation of the Bitcoin community and global consensus

The value of Bitcoin is not just brought by technology, but is based on global consensus. The Bitcoin Standard provides theoretical weapons to help Bitcoin holders strengthen their beliefs and understand why Bitcoin is not a bubble, but a currency revolution.

This book not only makes the discussion in the Bitcoin community more rigorous and profound, but also makes people realize that the value of Bitcoin far exceeds the price rise and fall - it is a shield against inflation, a fortress against the over-issuance of fiat currency, and the ultimate tool to realize personal sovereign wealth.

In addition, it has also contributed to the generation of a large number of Bitcoin educational content. A large number of discussions based on "Bitcoin Standard" appeared on YouTube, podcasts, and social media, making the idea of ​​Bitcoin more widely spread.

1.5 triggered subsequent in-depth research: After the great success of "Bitcoin Standard", Amus continued to explore the economic logic of Bitcoin and published more related works, such as: The Fiat Standard (2021) - a systematic analysis of the drawbacks of the legal currency system, revealing how it systematically deprives individual wealth and compares the superiority of Bitcoin;

Principles of Economics Economics, 2022) - Reconstruct the economic education system from the perspective of the Austrian school and challenge Keynesian economics.

These follow-up studies further consolidate Amus's economic theory and make Bitcoin economics an independent academic field, attracting the attention of more and more scholars.

The huge impact of "Bitcoin Standard" has also made it a book that has a significant position in the history of Bitcoin.

2. How high is the historical status of "Bitcoin Standard"?

The history of Bitcoin is not only a history of rising prices, but also a history of continuous convergence. In other words, without consensus condensation, the price of Bitcoin cannot rise so quickly. In this process, three books played a decisive role, and "Bitcoin Standard" is one of them. The other two books are: 2011, Digital Gold; 2015, Mastering Bitcoin 2.1, Digital Gold: The Origin and Early Development of Bitcoin

The 2011 book, Digital Gold, is the first book in Bitcoin history to record its early developments in detail, written by The New York Times reporter Nathaniel Popper. The book tells the story of Bitcoin’s gradual progress from Satoshi’s release of white paper to the mainstream in 2014.

The core value of this book is that it is a book about people. It vividly depicts the earliest believers of Bitcoin, including supporters of the crypto-punk movement, geek hackers, liberals, Wall Street traders, and even early users of the gray market like the Silk Road. The book details how Satoshi Nakamoto released the Bitcoin protocol anonymously, and Silk Road The stories of the founder), Winklevos brothers (the first bitcoin billionaires), Charlie Schrem (founder of BitInstant) and others, let you understand the rise of Bitcoin from a human perspective.

2.2 "Mastering Bitcoin": Understanding the technical foundations of Bitcoin

In 2015, "Mastering Bitcoin" was created by Andreas Written by Antonopoulos, it is known as the "Bible" of Bitcoin technology, helping countless developers and Bitcoin enthusiasts truly understand the underlying principles of this technology.

If Digital Gold tells the story and history of Bitcoin, then Mastering Bitcoin is a technical guide, and the best of this book is the book's biggest advantage. It analyzes how Bitcoin works, including public key encryption, blockchain data structures, transaction scripts, mining mechanisms, and how to build your own Bitcoin application. The author shows us the technological charm of Bitcoin with clear language, code examples and case analysis.

The significance of this book is that it makes Bitcoin not just a financial concept, but an open technical protocol that anyone can learn, develop, and improve. It can be said that "Mastering Bitcoin" has cultivated generations of developers for the Bitcoin ecosystem, making Bitcoin not just a speculative asset, but a truly decentralized financial network.

This book is also my introductory book on blockchain. I started buying Bitcoin after reading this book.. If you are hesitating, you might as well read this book. I have also written an article to recommend this book. English version

2.3 Why is "Bitcoin Standard" more historical?

If Digital Gold records the origin and initial consensus of Bitcoin and Mastery of Bitcoin laid the technical foundation for Bitcoin, then Bitcoin Standard is the first time that Bitcoin has truly placed Bitcoin in the framework of economics, viewing it as a sound currency, not just an innovative technology.

"Bitcoin Standard" tells us that Bitcoin is not just an investment target, it is the "gold" of the digital age and the cornerstone of the future global monetary system. It not only explains why Bitcoin has monetary attributes, but also argues why Bitcoin is more powerful than gold, why the central bank system is collapsing, and why the world is transitioning to the Bitcoin standard.

These three books construct the knowledge system of Bitcoin from three different perspectives: history, technology and economy, and "Bitcoin Standard" is undoubtedly the most important ideological work in this financial revolution.

3. Why is "Bitcoin Standard" so powerful?

The reason why "Bitcoin Standard" has such a great influence is not because it simply tells the technical architecture, price trends or investment strategies of Bitcoin, but because Amus adopts a rigorous economic methodology to place the rise of Bitcoin in the evolutionary framework of the entire currency history. The most important value of this book is not to provide short-term market forecasts, but to provide a set of underlying logic for understanding currency evolution, so that you and I can see clearly the historical inevitability of Bitcoin becoming a global reserve asset through short-term price fluctuations.

Amus' core methodology mainly includes the following dimensions:

3.1 The "evolution theory" of currency: interpreting the rise of Bitcoin using historical laws

Amus does not discuss Bitcoin in isolation, but reveals the historical logic of the rise of Bitcoin by reviewing the evolutionary history of currency. He believes that money is not invented out of thin air by or by individuals, but is the result of natural selection of human society in long-term market interactions. This theory is based on the concept of "spontaneous order" in economics, that is, the evolution of money is not a product of a planned economy, but is gradually evolved by the market in the process of optimizing transaction efficiency.

His discussion method is similar to Darwin's theory of evolution:/p>

The evolution of currency is similar to biological evolution. Different forms of currency (such as shells, salt, gold, and fiat currency) compete in the long river of history, and the most advantageous currency that survives is the most advantageous currency;

The key factors that affect the outcome of currency competition are scarcity, verifiability, convenience and stability;

Every large-scale economic change in human society will be accompanied by the rise of new forms of currency, such as the agricultural revolution brought metal currency, the industrial revolution gave birth to fiat currency, and the information revolution is giving birth to Bitcoin.

In this framework, Bitcoin is not a speculative tool, but the next stage of currency evolution. Just as gold once replaced shells and the US dollar once replaced gold, it will eventually replace the unstable fiat currency system.

3.2 "survival of the fittest" of currency: using economic principles to prove Bitcoin's competitive advantages

Amus did not simply say "Bitcoin is better than fiat currency", but based on the law of survival of the fittest in currency competition, he used economic principles to derive Bitcoin's competitive advantages. He used several classic economic concepts, such as:

"Sound Money" theory: Stable currencies must have low inflation, high credibility and long-term value storage capabilities, while Bitcoin has these characteristics, but fiat currency does not;

"Time Preference" theory: Bitcoin is a low-time preferred currency that encourages savings, while fiat currency stimulates consumption through inflation, destroys people's long-term economic planning;

"Money Network Effect" (Network Effect): The value of a currency comes from the scale of its users. Bitcoin is entering the accelerated stage of network effects and becoming a global storage value tool.

His argument is similar to natural selection: money does not survive by forced empowerment, but by market choices. The excessive issuance of fiat currency has led to a trust crisis, and gold has insufficient liquidity due to physical properties. Bitcoin just makes up for the shortcomings of these two, so it will inevitably become the dominant currency in the future.

3.3 "Mathematicalization" of currency: quantifying the economic value of Bitcoin using data models

AmusHis discussion is not just based on theoretical deduction. He widely uses mathematical models and data analysis in his book to quantify the economic attributes of Bitcoin. His research method is similar to financial analysts studying traditional assets, using data to verify hypotheses rather than speculation out of thin air.

The core tools he uses include:

Stock-to-Flow (S2F) model: Use mathematical models to explain why Bitcoin is scarce than gold and predict its long-term value growth trend;

Feder money supply growth rate vs. Bitcoin supply growth rate comparison: Use data to prove how Bitcoin’s fixed supply resists inflation, and how fiat currency’s unlimited printing of money erodes purchasing power;

Bitcoin price history vs. Major economic events: Use data to compare Bitcoin’s financial crisis in 2008, 2020 The performance during the large-scale printing of money in the epidemic year shows how it became a global safe-haven asset.

The significance of this methodology is that it makes the value of Bitcoin no longer depend on belief, but is based on quantifiable and verifiable economic models, making Bitcoin a "mathematically supported currency experiment" rather than a hype concept.

3.4 "Economics" of Currency: How does Bitcoin affect the global financial landscape?

In addition to economic analysis, Amus also explores how Bitcoin affects the global financial landscape from an economic perspective. His discussion is similar to the realist school of international relations, namely:

Money is the embodiment of power, the fiat currency system is a means to control the economy, and Bitcoin weakens its monopoly on currency;

The core of the dollar hegemony lies in the dollar standard, and Bitcoin is challenging this system, and El Salvador's list of Bitcoin as a fiat currency is an important step in global de-dollarization;

Bitcoin promotes economic freedom because it allows individuals to cross capital controls, directly hold and transfer wealth without being restricted by the banking system.

This analysis method makes Bitcoin not just a technology or investment phenomenon, but a catalyst for the transformation of the global financial order.

3.5 The "Psychology" of currency:Human nature interprets the long-term value of Bitcoin

Amus not only discusses the technological and economic properties of Bitcoin, but also discusses how human psychology affects the choice of the monetary system. He used behavioral economics to explain why Bitcoin is undervalued in the short term and has extremely high market attractiveness in the long term: Loss Aversion: People's pain of losing wealth is much greater than the happiness of getting wealth, and Bitcoin provides a way to avoid the risk of depreciation of fiat currency; Herding Effect: When institutions begin to enter the Bitcoin market (such as Strategy, Tesla, and Bitcoin ETFs), more and more individuals and businesses will follow;

Incremental consensus (Incremental) Consensus): The adoption of Bitcoin is a process of increasing growth, and its value will continue to rise as more and more institutions and individuals use it.

Through these psychological models, he explains why Bitcoin may experience drastic fluctuations in the short term, but in the long term, its value trend is irreversible.

Summary: Amus's methodology

Aus's methodology did not simply tell you that "bitcoin will rise". He used a complete analysis framework of history, economics, data models, economics and psychology to build a complete Bitcoin understanding system.

This makes "Bitcoin Standard" not just a book about Bitcoin, but a book about the nature of money, the global financial order, and the laws of human economic evolution.

If you finish reading this book, you will not only remember the price of Bitcoin, but will have a deeper understanding of the nature of currency, the operating logic of the economic system, and how Bitcoin changes the world. This is what makes this book really unique.

4. What kind of person is Amus?

Saifedean Ammous was born in Nablus, Palestine in 1980. He spent his childhood in Saudi Arabia and Brazil, and did not move to Ramala in the West Bank until 1990. Growing up in such a turbulent region, he witnessed early currency devaluation, conflict and capital controls against ordinaryThe influence of human life.

However, Amus' academic starting point has nothing to do with economics. He first studied mechanical engineering at the American University of Beirut, and after graduation he turned to social sciences to pursue his master's degree in development management at the London School of Economics (LSE). He then received his PhD in Sustainability from Columbia University, with research in energy economics, resource management and the stability of the monetary system.

This academic background laid his interdisciplinary analytical ability, allowing him to rely not only on traditional economic theories when studying money, but also combines the rigor of engineering, mathematical modeling of energy economics, and development economics' profound insight into the real world. After graduating from his Ph.D., Amus entered Lebanese American University, where he served as an assistant professor of economics, teaching courses such as capital markets, development economics, and energy economics. His research direction initially focused on resource economics, especially oil, energy supply chains, and global economic growth models. But over time, he began to question the sustainability of the central bank system and fiat Money. In his teaching and research, he gradually discovered that the inflation mechanism of the fiat currency system has caused wealth to be redistributed to financial institutions with "monetary printing rights"; the currency of the central bank is unpredictable and can be used to infringe money at any time, while ordinary people can only passively bear the consequences of asset shrinkage; although gold is scarce, it is still regulated and market manipulated in the modern economic system, and cannot truly become a hard currency in the free market.

In this process, he came into contact with Austrian Economics, especially Ludwig von MIses and Friedrich Hayek's theory began to focus on the concept of Sound Money.

What really changed his perception was that he studied the economic logic of Bitcoin around 2013. He found that: Bitcoin is the first completely decentralized, tampered with mathematical scarcity in human history; Bitcoin’s issuance mechanism (halving block rewards) makes it have superior inflation control capabilities than gold; Bitcoin does not rely on or central banks, its value is completely determined by market consensus. This prompted him to gradually abandon the mainstream Keynesian economic system, turn to the Austrian school, and become one of the most determined communicators of Bitcoin's ideas.

Conclusion: Bitcoin standard, a new consensus on global capital

From El Salvador to include Bitcoin in national policy, to Strategy (formerly MicroStrategy) practicing the "bitcoin standard" with a position of tens of billions of dollars, this series of events is not accidental, but an early signal of the change of the global monetary system.

The Bitcoin standard is not a short-term strategy, but a long-term paradigm.

In the past, gold was the world's reserve currency, but it could not adapt to the global liquidity demand in the digital age; fiat currency was once the cornerstone of the credit system, but it gradually lost its credibility in the infinitely expanded printing mechanism. Bitcoin, with its fixed supply, anti-inflation and decentralization, has become the most powerful candidate for "solid currency" in this era.

Where national policies resonate with capital often give birth to historic turning points.

When a sovereign incorporates Bitcoin into fiat currency, it is against global monetary hegemony; when a listed company uses Bitcoin as the core of its balance sheet, it is against liquidity dilution. When capital and sovereignty point to Bitcoin, we are witnessing a new monetary consensus being formed.

The return of "solid currency" is not a day or night, but an intergenerational transformation. This changeThe winner is not a short-term speculator, but a person who can truly understand the logic of Bitcoin and is willing to persist for a long time. Mastering the underlying logic of the Bitcoin standard means mastering the ticket to the future monetary system.