The Fiat Standard: Debt Slavery Alternative to Human Civilization
In The Fiat Standard, renowned economist Saifedean Ammous applies his unique analytical perspective to the fiat money system, treating it as a feat of engineering and technology, much like he did with Bitcoin in his international bestseller The Bitcoin Standard. This time, Ammous examines the shift from the gold standard to today’s state-backed fiat currency system.
He outlines the purpose and failures of the fiat standard, delves into its broader economic, political, and social impacts, and explores how Bitcoin could influence this system over time. With keen insight, Ammous analyzes global political currencies in comparison to Bitcoin, highlighting how they are “mined” whenever state-backed entities issue credit, their lack of inherent inflation constraints, and the rampant government interventions that have led to severe, lasting distortions in global food, energy, science, and education markets.
Through these comparisons, Ammous suggests that Bitcoin could be our next step forward. Unlike the fiat system, which leads to uncontrolled debt, Bitcoin offers high spatial salability without such consequences. Rather than a chaotic, hyperinflationary collapse, the rise of Bitcoin could act as a debt reset and an orderly upgrade of the global monetary system, potentially revolutionizing the world’s capital and energy markets.