Bitcoin’s meteoric rise—from fractions of a cent to nearly $100,000—has captivated investors, economists, and technologists alike. With a compound annual growth rate exceeding 150% over the past decade, it stands as one of the most explosive financial phenomena in modern history. But what’s behind this relentless upward trajectory?
Major financial institutions across Australia and the globe are now integrating Bitcoin into their service offerings. El Salvador has adopted it as legal tender, and other nations are closely studying its potential. With a hard-capped supply of 21 million coins, Bitcoin’s scarcity is undeniable. The real question isn’t if demand is driving the price—it’s why demand keeps growing.
To understand the deeper forces at play, we turn to The Bitcoin Standard by Dr. Saifedean Ammous—a seminal work that explores the evolution of money and Bitcoin’s role as a modern form of sound currency. Below are seven key insights from the book that illuminate why Bitcoin continues to rise.
The Driving Forces Behind Bitcoin’s Price Surge
Bitcoin’s ascent isn’t random. It’s rooted in fundamental economic principles and global shifts in how we perceive and use money. Here’s a breakdown of the core reasons fueling its growth:
- A Superior Form of Money
- The Hardest Money Ever Created
- A Hedge Against Hyperinflation
- A Tool for Economic Freedom
- Revolutionizing Remittance Payments
- Neutral, Borderless Money
- Response to Excessive Money Printing
Let’s explore each in detail.
1. A Superior Form of Money
"While Bitcoin is a new invention of the digital age, the problems it purports to solve — namely, providing a form of money that is under the full command of its owner and likely to hold its value in the long run — are as old as human society itself."
Money has always been central to human civilization. From seashells to gold, societies have sought reliable mediums of exchange. Bitcoin represents the next evolution: digital, decentralized, and secure.
Unlike traditional currencies controlled by central banks, Bitcoin gives individuals full ownership. No institution can freeze your account or devalue your holdings overnight. This autonomy makes it not just a new type of money—but a better one.
👉 Discover how digital ownership is reshaping financial independence.
2. The Hardest Money Ever Created
"The monetary media that survived for the longest are the ones that had very reliable mechanisms for restricting their supply growth — in other words, hard money."
"Hardness" in economics refers to how difficult it is to increase the supply of a currency. Gold has been prized for centuries because new discoveries are rare and extraction is costly. Bitcoin takes this concept further.
With a fixed supply of 21 million coins and a predictable issuance schedule enforced by code, Bitcoin is mathematically scarce. Once all coins are mined—expected around 2140—its inflation rate will drop to zero. No government or corporation can alter this.
This absolute scarcity makes Bitcoin the hardest money in history, a key reason why long-term investors are drawn to it.
3. A Hedge Against Hyperinflation
"Hyperinflation is a form of economic disaster unique to government money. There was never an example of hyperinflation with economies that operated a gold or silver standard."
When governments print money excessively, the result can be catastrophic inflation. We’ve seen this in Venezuela, Zimbabwe, Lebanon, and Argentina—where savings evaporated overnight.
Bitcoin offers an escape. Its supply cannot be inflated by policy decisions. As global central banks continue quantitative easing and expand money supplies, more investors view Bitcoin as a digital alternative to gold—a modern store of value immune to political manipulation.
Even high-profile figures like Jack Dorsey have warned that hyperinflation could soon affect major economies, accelerating interest in Bitcoin as a protective asset.
👉 See how investors are protecting wealth in uncertain times.
4. A Tool for Economic Freedom
"Any person who owns Bitcoin achieves a degree of economic freedom which was not possible before its invention."
In stable economies like Australia or Canada, financial access is often taken for granted. But billions worldwide live under oppressive regimes or weak financial systems where capital controls, censorship, or inflation erode wealth.
Bitcoin changes that. With just a smartphone and internet connection, anyone can store, send, or receive value without permission. In countries like Nigeria and Turkey, Bitcoin adoption has surged as citizens seek alternatives to failing local currencies.
This empowerment explains why grassroots adoption often outpaces institutional uptake in emerging markets.
5. Revolutionizing Remittance Payments
"Bitcoin’s advantage is that by bringing the finality of cash settlement to the digital world, it has created the fastest method for final settlement of large payments across long distances and national borders."
Traditional cross-border payments are slow and expensive, often taking days and charging high fees through intermediaries like SWIFT or Western Union.
Bitcoin offers near-instant settlement with minimal costs—especially when using the Lightning Network, a second-layer protocol that enables fast, low-fee transactions. Migrant workers can now send money home in seconds, not days, keeping more of their hard-earned income.
This practical utility strengthens Bitcoin’s case not just as an investment, but as a functional global currency.
6. Neutral, Borderless Money
"Bitcoin, having no counterparty risk and no reliance on any third-party, is uniquely suited to play the same role that gold played in the gold standard. It is a neutral money for an international system..."
The U.S. dollar’s status as the world’s reserve currency gives America significant geopolitical leverage—a privilege known as "exorbitant." Other nations must hold dollars for trade, exposing them to U.S. monetary policy and sanctions.
Bitcoin offers an alternative: a currency not tied to any nation or institution. It operates on a decentralized network, making it resistant to censorship and control. Countries like El Salvador adopted Bitcoin not just for financial innovation—but to reduce dependency on foreign monetary systems.
A neutral global currency could level the playing field in international finance.
7. Response to Excessive Money Printing
"The total U.S. M2 measure of the money supply in 1971 was around $600 billion, while today it is in excess of $12 trillion, growing at an average annual rate of 6.7%."
Is Bitcoin getting more valuable—or are fiat currencies losing theirs?
The answer lies in both. As central banks expand money supplies to stimulate economies, the purchasing power of traditional currencies declines. Assets like Bitcoin, gold, and real estate tend to rise in nominal terms as a result.
Bitcoin’s fixed supply makes it a natural counterbalance to inflationary monetary policies. The more fiat money printed, the more attractive scarce digital assets become.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin’s price rise sustainable long-term?
A: While short-term volatility is expected, many experts believe Bitcoin’s long-term appreciation is supported by increasing adoption, scarcity, and macroeconomic trends like inflation and de-dollarization.
Q: Can Bitcoin replace traditional currencies?
A: Full replacement is unlikely in the near term, but Bitcoin could become a dominant reserve asset—similar to gold—while layer-2 solutions handle everyday transactions.
Q: Why is Bitcoin called 'digital gold'?
A: Like gold, Bitcoin is scarce, durable, and decentralized. Its fixed supply and resistance to confiscation make it an ideal store of value in the digital age.
Q: Does Bitcoin have intrinsic value?
A: Its value comes from its utility—scarcity, security, decentralization, and global accessibility—rather than physical properties or government decree.
Q: How does halving affect Bitcoin’s price?
A: Every four years, Bitcoin’s block reward halves, reducing new supply. Historically, these events have preceded significant price increases due to supply-demand imbalances.
Q: Can governments ban Bitcoin?
A: While some countries have restricted or banned it, Bitcoin’s decentralized nature makes complete eradication nearly impossible—much like banning the internet.
The Future of Bitcoin: Growth and Stability
Bitcoin cannot grow at its current pace forever. Rapid price increases attract speculative investment, but long-term sustainability depends on real-world utility and adoption.
As Dr. Ammous notes, while Bitcoin behaves like a high-growth startup today, it may evolve into a stable monetary asset once its network matures. At that stage, it could serve as a global settlement layer—reliable, predictable, and universally accessible.
With a market cap still far below that of gold or major fiat currencies, many analysts believe Bitcoin has substantial room for growth.
👉 Explore how early adoption could shape future financial landscapes.
Core Keywords
- Bitcoin price surge
- The Bitcoin Standard
- Sound money
- Digital gold
- Hyperinflation hedge
- Decentralized currency
- Economic freedom
- Hard money
Disclaimer: Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from a qualified financial advisor before making any financial decisions.