U.Today – The story of how (BTC) came to be is a topic of much debate in financial circles, but it should no longer be the main focus, according to crypto expert Anthony Pompliano. While the creation of Bitcoin from “nothing” is often criticized, Pompliano has noted that the real problem is the continued creation of traditional currencies, not the initial conception of Bitcoin itself.
In a recent online discussion with David Andolfato, Pompliano pointed out the key difference between the limited supply of Bitcoin and the seemingly unlimited issuance of fiat currencies.
This difference is at the heart of broader concerns about inflation and monetary policy, as fiat money is often criticized for losing value over time because there is too much of it. Andolfato, a well-known economist, has in turn made comparisons between Bitcoin and fiat, arguing that Bitcoin was also created out of nothing.
But what sets Bitcoin apart is that it has a limited, decentralized supply, which was a deliberate choice by its pseudonymous creator, Satoshi Nakamoto. The goal was to create a peer-to-peer digital currency with a limited supply of 21 million coins, set by the algorithm. This scarcity is what makes Bitcoin a digital answer to gold and gives it the title of “digital gold”, where the supply cannot be manipulated by any central authority.
As Bitcoin has become more common, more institutions and individual investors are getting on board, and the focus has shifted from how it was created to how it performs and whether it can help protect against inflation.
This year, Bitcoin has seen quite impressive growth, reaching almost $100,000 per coin. With a price increase of over 136% since the beginning of the year, BTC has outperformed traditional safe-haven assets such as gold, which itself saw a significant 27.6% increase in the same period.
This article was originally published on U.Today.
