In this episode of the Lex Fridman podcast, Austrian economist Saifedean Ammous explores the significant role of money in civilization. He distinguishes between hard money, which is difficult to produce, and soft money, which is easily created. Ammous critiques Keynesian economics and champions Bitcoin as a more effective monetary system. He believes hard money encourages long-term planning and societal advancement, whereas soft money, often resulting from fraud and government manipulation, tends to cause inflation and shortsighted choices. Ammous argues that Bitcoin's fixed supply and decentralized structure could alleviate the downsides of fiat currency and even impact geopolitical stability. Despite its volatility, he highlights Bitcoin's long-term potential and its ability to withstand government control.
