According to U.Today, the origins of Bitcoin (BTC) have long been a subject of debate, but crypto expert Anthony Pompliano suggests that the focus should shift away from its creation. Pompliano argues that the real issue lies in the ongoing creation of traditional fiat currencies, rather than Bitcoin's inception from "thin air." In a recent discussion with economist David Andolfato, Pompliano highlighted the contrast between Bitcoin's limited supply and the seemingly endless issuance of fiat currencies.
This distinction is central to broader concerns about inflation and monetary policy, as fiat money is often criticized for depreciating over time due to its abundant supply. Andolfato, however, compared Bitcoin to fiat, noting that it too was created from nothing. Pompliano emphasized that the problem is not the original creation but the continuous creation of currency. He argued that if fiat currencies were finite, many of the current issues would not persist.
Bitcoin's limited and decentralized supply was a deliberate choice by its pseudonymous creator, Satoshi Nakamoto, who aimed to establish a peer-to-peer digital currency with a capped supply of 21 million coins. This scarcity is what gives Bitcoin its "digital gold" status, as its supply cannot be manipulated by any central authority. As Bitcoin gains mainstream acceptance, the focus has shifted from its creation to its performance and potential as a hedge against inflation.
This year, Bitcoin has experienced significant growth, nearing $100,000 per coin. With a price increase of over 136% since the start of the year, BTC has outperformed traditional safe-haven assets like gold, which saw a notable rise of 27.6% in the same timeframe. As more institutions and individual investors embrace Bitcoin, the conversation continues to evolve around its role in the financial landscape.
