Saifedean Ammous, author of the influential book “The Bitcoin Standard,” stated that Bitcoin is already being used as a medium of exchange and that the impact of its volatility is likely to decrease over time.
Debate on Bitcoin’s role as a medium of exchange
In a recent post on X, Ammous argued that Bitcoin could serve as a medium of exchange, especially as its price fluctuations become less extreme, potentially even outpacing gold in stability while overtaking it in terms of market value.
Ammous emphasized that holding Bitcoin constitutes using it as money, and its relatively limited use for everyday payments does not undermine the process of monetization, which he expects to unfold further as the network matures.
“Holding Bitcoin is using Bitcoin as money, and its lack of widespread use as a method of payment is no evidence against its monetization unfolding,” stated Ammous.
His comments came in response to Professor Lawrence H. White, an economist and author of “Better Money: Gold, Fiat, or Bitcoin?” White contended that Bitcoin’s fixed supply leads to significant price volatility, making it unsuitable as a reliable medium of exchange.
White, referencing chapter six of his book, warned that because Bitcoin’s supply cannot respond to demand swings, its price becomes too unstable for regular transactions. He further highlighted that this limitation has allowed stablecoins to take a leading role in daily payment volume compared to Bitcoin.
White wrote, “With no supply response to demand swings, BTC’s price is too volatile for people who want a reliable medium of exchange.”
Mini dictionary: Stablecoin, a digital currency designed to maintain a stable value by pegging it to a reserve asset such as the US dollar or euro, and is widely used for payments due to its low volatility compared to other cryptocurrencies.
Industry projections and comparisons with gold
Several analysts in the cryptocurrency industry have forecasted that Bitcoin could eventually match or surpass gold’s market capitalization. In May 2025, André Dragosch, head of European research at Bitwise, a leading crypto asset manager, projected a Bitcoin price of $1 million by 2029, a valuation that would bring its total market cap in line with that of gold.
Currently, Bitcoin holds a market capitalization of approximately $1.6 trillion, while gold’s global market cap stands near $29 trillion. For Bitcoin to overtake gold as the leading store of value, it would need to grow at least 18 times its current market size.
| Asset | Market Cap (approx.) | Required Growth to Match Gold |
|---|---|---|
| Bitcoin (BTC) | $1.6 trillion | 18-fold |
| Gold | $29 trillion | – |
Adam Back, CEO of Blockstream, a blockchain technology company, predicted in April 2025 that Bitcoin will begin to compete with gold’s traditional role as a monetary hedge. He pointed to increasing global financial instability and inflation in fiat currencies as potential catalysts for Bitcoin’s growing relevance as an alternative store of value.
