Gold's Historical Limitations in Modern Economies
In December 2025, Saifedean Ammous, a noted Bitcoin economist, highlighted gold's fatal flaw of high physical settlement costs during a panel in Amsterdam. Ammous's views suggest Bitcoin's digital settlement superiority over gold, potentially influencing digital asset adoption amid ongoing discussions about the future of global money systems.
Renowned economist Saifedean Ammous recently highlighted gold's flaws in modern economies during a panel discussion in Amsterdam. He emphasized the high cost and difficulty associated with gold's physical settlement, which historically led to centralization under banks and governments, affecting its monetary role.
Economists Saifedean Ammous and Rahim Taghizadegan have been instrumental in discussing gold's limitations. Ammous described gold's transport fees and logistical challenges, which have historically forced reliance on centralized custodians, making it susceptible to government interventions and confiscations.
Ammous's insights suggest that the physical settlement issues with gold have broader implications for its role as a monetary asset. These logistical challenges encourage centralization, making gold prone to governmental control and reducing its effectiveness in modern digital economies.
Historical Centralization and Fiat Systems
"This is how fiat money gets installed as a protocol. Governments spend too much and then they default by confiscating and restricting the movement of gold. They suspend the redemption of gold."
- Saifedean Ammous, Author & Economist, The Bitcoin Standard
Historically, centralized control has allowed states to suspend gold redemption and enhance paper money systems, ultimately establishing fiat systems. This centralization has often led to monetary policies where gold could be easily confiscated, hindering its function as a stable monetary base.
Bitcoin's Advantage in Global Settlement
Future predictions suggest Bitcoin could dominate as the preferred global settlement asset, challenging gold's position. Bitcoin's low-friction, decentralized design counters these centralization issues, potentially leading to its broader adoption and changing traditional asset hierarchies.
Saifedean Ammous argues that Bitcoin's benefits in global settlement make it a favorable alternative to gold. Historical trends indicate centralization risks that gold faces. This insight positions Bitcoin as a continually evolving solution to the flaws inherent in gold's physical movement.