U.Today – The story of how (BTC) came into being is the subject of much debate in the financial world, but according to crypto expert Anthony Pompliano, it is no longer the main story. It shouldn't be the focus. Although Bitcoin's creation “out of thin air” is often criticized, Pompliano believes the real problem is not the initial conception of Bitcoin itself, but the continued creation of traditional currencies. Outlined.
In a recent online discussion with David Andolfatto, Pompliano pointed out an important difference between Bitcoin, which has a limited supply, and fiat currency issuance, which has a seemingly unlimited supply.
This difference is at the heart of broader concerns about inflation and monetary policy, as fiat currencies are often criticized for being too plentiful and losing value over time. Mr. Andolfatto, a prominent economist, now compared Bitcoin and fiat currency, arguing that Bitcoin was also created from nothing.
But what makes Bitcoin different is that its supply is limited and decentralized. This is a deliberate choice by the pseudonym's creator, Satoshi Nakamoto. The goal was to create a peer-to-peer digital currency with a limited supply of 21 million coins set by an algorithm. This scarcity makes Bitcoin the digital answer to gold, giving it the title of “digital gold” whose supply cannot be manipulated by central authorities.
As Bitcoin becomes more mainstream, more and more institutions and retail investors get on board, and the focus shifts from how Bitcoin was created to how well it performs and whether it can help prevent inflation. I did.
Bitcoin has experienced some pretty impressive growth this year, reaching almost $100,000 per coin. With its price surging more than 136% since the beginning of the year, BTC has outperformed traditional safe-haven assets such as gold, which itself has posted a massive 27.6% increase over the same period.
This article was originally published on U.Today
