Saifedean Ammous, the author of the 2018 academic book “The Bitcoin Standard,” said that Bitcoin already functions as a medium of exchange and that volatility’s effect on that is likely to diminish.
Bitcoin ($BTC) can serve as a medium of exchange as it becomes less volatile than gold while surpassing the market capitalization of the largest precious metal, wrote Ammous in a Tuesday X post.
“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,” added Ammous.
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The remarks come in response to a passage in Professor Lawrence H. White’s book, “Better Money: Gold, Fiat, or Bitcoin?,” which argued that Bitcoin’s fixed supply makes it too volatile to serve as a medium of exchange.
“With no supply response to demand swings, $BTC’s price is too volatile for people who want a reliable medium of exchange,” wrote White in a Monday X post, referencing chapter six of his book. He added that the lack of supply response was the reason stablecoins have “eaten $BTC’s lunch transaction volume.”
Other industry watchers have also predicted that Bitcoin would eventually surpass gold. In May 2025, Bitwise’s head of European research, André Dragosch, told Cointelegraph that their in-house prediction forecasts a $1 million Bitcoin price by 2029, which would make Bitcoin match gold’s market capitalization.
However, Bitcoin’s current $1.6 trillion market capitalization would need to grow by at least 18-fold to surpass Gold’s near $29 trillion market cap to become the leading global asset.
In April 2025, Blockstream CEO Adam Back predicted Bitcoin will start rivaling gold’s use cases as a monetary hedge, due to global financial instability and rising fiat inflation.
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