'The Bitcoin Standard' Author Predicts Bitcoin Will Become Less Volatile and Surpass Gold in Size
Saifedean Ammous, author of the 2018 academic work ‘The Bitcoin Standard,’ has stated that Bitcoin is already functioning as a medium of exchange and that the impact of its volatility is likely diminishing. He envisions Bitcoin becoming less volatile than gold while surpassing gold’s market capitalization, affirming its role as a legitimate monetary asset.
Debate on Bitcoin’s Volatility and Its Role as Money
Ammous posted on X on Tuesday that holding Bitcoin equates to using it as money. He argued that Bitcoin’s limited use as a payment method does not disprove its ongoing monetization.
This statement was made in response to Professor Lawrence H. White’s argument in his book ‘Better Money: Gold, Fiat, or Bitcoin?,’ which claims Bitcoin’s fixed supply hinders its function as a medium of exchange due to volatility linked to supply rigidity.
Critique of Professor White’s Position and the Role of Stablecoins
Professor White contends that Bitcoin’s inability to adjust supply to demand swings results in excessive volatility, making it unreliable for transactions. He also noted stablecoins have captured significant transaction volume from Bitcoin.
Ammous rejects this critique, maintaining that Bitcoin is already being used as money and continues to mature in this role.
Analyst Predictions on Bitcoin’s Growth and Market Capitalization
Industry analysts foresee Bitcoin eventually overtaking gold. In May 2025, Bitwise’s head of European research André Dragosch told Cointelegraph their internal forecasts indicate a Bitcoin price of $1 million by 2029, aligning its market cap with gold’s.
Currently, Bitcoin’s market cap is about $1.6 trillion, but gold is valued near $29 trillion, meaning Bitcoin would have to grow roughly eighteenfold to surpass gold.
Industry Leaders’ Views on Bitcoin as a Financial Hedge
In April 2025, Blockstream CEO Adam Back predicted that Bitcoin would begin rivaling gold’s role as a monetary hedge due to global financial instability and rising fiat inflation.
Experts thus suggest changing economic conditions promote Bitcoin’s strengthening position as an alternative asset with growing significance.
Why it matters
The renewed debate about Bitcoin’s role as a medium of exchange and monetary asset is crucial for understanding its economic potential. The clash between academic authors reflects differing views on its volatility and practical use. Predictions about Bitcoin’s market cap growth and prospects to surpass gold highlight its increasing relevance in finance, especially amid inflation and fiat currency instability. This news holds significance for investors, analysts, and market participants evaluating the future of digital assets.
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