The Story of Bitcoin: A Shift in Focus

The story of how Bitcoin (BTC) came to be is a topic of much debate in financial circles. However, according to crypto expert Anthony Pompliano, it should no longer be the main focus. While Bitcoin's creation from "thin air" is often criticized, Pompliano emphasizes that the real issue lies in the continuous creation of traditional currencies, rather than the initial conception of Bitcoin itself.

In a recent online discussion with David Andolfato, Pompliano highlighted the key difference between the limited supply of Bitcoin and the seemingly unlimited issuance of fiat currencies.

This contrast is central to concerns about inflation and monetary policy. Fiat money, criticized for losing value over time, suffers from excessive supply. Andolfato, a well-known economist, has drawn parallels between Bitcoin and fiat, noting that both were created from nothing.

What distinguishes Bitcoin is its limited and decentralized supply—a deliberate choice by its pseudonymous creator, Satoshi Nakamoto. The aim was to create a peer-to-peer digital currency with a capped supply of 21 million coins, set by the algorithm. This scarcity positions Bitcoin as a digital counterpart to gold, earning it the title of "digital gold," as its supply cannot be manipulated by any central authority.

As Bitcoin gains mainstream traction, institutions and individual investors increasingly focus on its performance and its potential to protect against inflation, rather than how it was created.

This year, Bitcoin has exhibited remarkable growth, reaching nearly $100,000 per coin. With a price surge of over 136% since the beginning of the year, BTC has outperformed traditional safe-haven assets like gold, which saw a significant rise of 27.6% in the same period.

This article was originally published on U.Today.