Sound money is essential for economic prosperity from "summary" of The Fiat Standard by Saifedean Ammous
Sound money is a fundamental requirement for a prosperous economy. Without sound money, individuals and businesses are unable to accurately measure value, make informed decisions, and engage in meaningful exchange. Sound money must possess certain characteristics to fulfill its role effectively. It must be durable, portable, divisible, and have a high value-to-weight ratio. Additionally, sound money must be scarce and difficult to counterfeit to maintain its value over time. When a currency is not sound, it leads to economic distortions, misallocations of resources, and a decrease in overall wealth. Fiat money, which is not backed by any tangible asset, is particularly prone to manipulation and debasement by governments and central banks. This manipulation leads to inflation, wealth redistribution, and a decrease in the purchasing power of the currency. In contrast, sound money serves as a stable store of value and facilitates long-term economic planning and growth. The importance of sound money is evident throughout history. Civilizations that adopted sound money, such as gold and silver, flourished economically and culturally. On the other hand, socie...
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