The Fiat Standard
by Saifedean Ammous
The Fiat Standard was published after Ammous’ more popular title: The Bitcoin Standard. It examines Fiat currency, paper money that isn’t backed by Gold, as though it were a cryptocurrency token. With the underlying attributes of Fiat currency laid clear, readers can more easily compare it to Bitcoin and Gold.
After outlining the deficiencies of Fiat currency, Ammous then describes the effects of Fiat on our world, ranging from diet and health to architecture and fuel.
Ammous’ uncovering the attributes of different kinds of currency over time is laudable, especially when so many of us grow up without questioning if the paper bills we use actually have value.
Some of the attributes of currency that Ammous describes are:
Portability, Durability, Transparency, speed of Finalization, Scarcity, and Security (cannot be counterfeited.)
Fiat money scores highly for Portability and has a fast Finalization time. That’s it.
Gold scores highly for Durability and Scarcity, and it cannot be debased without people figuring it out pretty quick.
Bitcoin, however, scores highly in all important comparables.
See this wonderful chart to more easily grasp what I’m trying to say above. (If you know who to attribute it to, please let me know.)
These attributes of money and how Fiat, Gold, and Bitcoin compare against each other is the most important thing to take away from the book. Though, admittedly, the main subject is more about the history of Fiat currency and how it corrupts our societies.
As for how this book reads, it’s uneven.
I was carried away in the beginning. I found it very convincing. But then the chapters on ‘Fiat Life’ turned me off.
For example, Ammous seems to think that vegetarianism is a hoax put out to further government ends, and he equates non-meat foods with junk food. Many of his arguments are based-on old studies and diet movements.
As I’m a vegetarian who hasn’t experienced any downsides of eating vegetables and plants, this argumentation goes against all my personal, lived experience. I consider it ignorant to the extreme.
Furthermore, Ammous seems to be a climate change skeptic. Yes, I can see his arguments about energy reliability seems to make sense. But at the same time, they show no imagination or forethought about potential consequences.
His chapter on ‘Fiat Science’ is similar. Normally I never do this, but I skipped parts in the center of this book. And I would recommend you do the same.
Despite its faults, I would still recommend the book. So what if a few ideas are ass-backward? If you have an ounce of better information you can brush them aside. The main draw is to think outside of the box and learn to appreciate the sea-change that is cryptocurrencies challenging the dollar as the world’s reserve currency.
I am looking forward to getting my hands on The Bitcoin Standard soon.
Are you a Crypto-enthusiast? Did you read Ammous’ book? What do you think?