Bitcoin is a form of sound money from "summary" of The Fiat Standard by Saifedean Ammous
Bitcoin is a form of sound money. But what does it mean for money to be sound? Sound money is money that is reliable, predictable, and resistant to manipulation. It is money that holds its value over time and cannot be debased by central authorities. Sound money is money that is scarce, durable, divisible, and easily transportable. Sound money is money that is difficult and costly to produce, which prevents its supply from being inflated. Bitcoin possesses all of these qualities. It is scarce because there will only ever be 21 million bitcoins in existence. This scarcity is programmed into the code and cannot be changed. Bitcoin is durable because it exists on a decentralized network of computers that ensures its continued operation. Bitcoin is divisible because it can be broken down into smaller units, making it easy to use for transactions of any size. Bitcoin is easily transportable because it can be sent anywhere in the world in a matter of minutes. Furthermore, Bitcoin is resistant to manipulation. Its decentralized nature means that no single entity can control its supply or value. Bitcoin's scarcity and immutability make it a reliable store of value. Its predictable issuance schedule ensures that its value cannot be inflated away. In a world of fiat currency, where central banks can print money at will, Bitcoin stands out as a beacon of sound money.- Bitcoin's characteristics make it a form of sound money. Its scarcity, durability, divisibility, and transportability, combined with its resistance to manipulation, make it a reliable store of value. As the world grapples with the consequences of fiat currency, Bitcoin offers a viable alternative that is immune to the whims of central authorities.
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