Willy Woo Argues Bitcoin's Fixed Supply Could Slow Economic Growth

Bitcoin analyst Willy Woo responds to economist Saifedean Ammous' challenge regarding the implications of a Bitcoin standard. Woo claims that Bitcoin's fixed supply increases borrowing risks, potentially slowing economic growth. Ammous, author of The Bitcoin Standard, has been seeking a clear explanation for why hard-capped money might fail since 2019. Woo highlights that as Bitcoin's value rises, borrowers face higher repayment costs, leading to increased default risks and lenders becoming more cautious. He cites the current global borrowing for AI infrastructure as an example of debt-driven growth, warning that this trend could lead to a crash. Woo draws parallels to the gold standard, where increasing the ratio of paper money to gold backing helped maintain credit flow despite a scarce reserve asset. He acknowledges that while a Bitcoin standard may result in slower growth, it could also reduce economic bubbles. Woo argues that growth relies on technology, energy, and raw materials, which require large-scale infrastructure and capital. He suggests that a sats-based economy might trade faster growth for fewer economic bubbles.

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