People are beginning to understand that their money has been devalued by central banks and governments for decades, but they don’t know what to do about it.
It has become clear that this system is not working for everyone. If debt continues to rise and inflation persists due to excess quantitative easing, there are only a few steps the governments and central banks can attempt in order to slow the monetary pain; but if history is to rhyme, we know this doesn’t end well for anyone who stays inside the fiat system.
What is the answer? Fiat currency needs competition to remain accountable and liable. We need a new form of money, one that people can trust and use privately without government interference or manipulation.
For the first time in history, we have an alternative for sound money. It’s called bitcoin, and it might just be the best option available today.
This article will explain why bitcoin meets all of the standards required of a truly sound form of money and why this is vitally important during these uncertain economic times.
Is Bitcoin sound money?
Bitcoin (BTC) is a completely decentralized digital currency. It was created in 2009 by an unknown person using the alias Satoshi Nakamoto. By creating bitcoin, Nakamoto conceived of bitcoin as “electronic cash”, much like physical cash or gold coins—except completely intangible and not controlled by governments or other central authorities like banks. Instead, bitcoin uses cryptography to control its creation and transactions.
The bitcoin network is completely transparent, meaning that bitcoin can be tracked at all times through the blockchain, which records every bitcoin transaction.
Sound money
Bitcoin meets all of these requirements better than any other form of money we’ve ever seen before. It was the first digital currency to be completely decentralized, meaning no single institution controls the bitcoin network.
Instead, anyone with access to an internet connection can participate in its growth and development as well as earn bitcoins through “mining” (the process which helps secure transactions on the blockchain).
Because bitcoin isn’t tied to any country or central bank, it’s also immune from political influence or banking regulations like capital controls which are often used during times of financial crisis to prevent citizens from moving their assets into safer currencies like gold and silver.
Let’s discuss the properties of sound money
Divisibility:
Bitcoin is divisible up to 8 decimal places. This means that bitcoin can be split into 100,000,000 smaller units if needed.
Denominations of bitcoin can be written in Satoshi, the smallest bitcoin unit currently available, or more commonly expressed in terms of fractions.
Transferability:
Since bitcoin isn’t tied to any banks or governments, it’s easily transferable across countries and between users on a global scale. This gives bitcoin an advantage over paper money which isn’t as easily transferable across long distances.
Fungibility:
Each bitcoin is worth exactly what it’s valued at on the market. One bitcoin won’t have different values based on previous bitcoin transactions—unlike some currencies where older bills are often worth less than newer ones. This is called fungibility, and it’s a property bitcoin shares with physical commodities like gold and silver.
Durability:
Bitcoin is incredibly durable. It can be stored on a computer or in a digital wallet, or even offline on a piece of paper or metal. This makes bitcoin much more durable than traditional forms of money like paper currency which can be easily destroyed or lost.
Portability:
Bitcoin is highly portable. You can carry it on a thumb drive, phone, or even write it down on paper.
Scarcity:
Bitcoin has a finite supply of 21 million bitcoins which will be released over time. This makes bitcoin more scarce than most other forms of currency.
Bitcoin has all of the properties of sound money. It’s decentralized, free from political influence and banking regulations, divisible, transferable, fungible, durable and scarce.
Bitcoin is changing the game for currency as we know it. Instead of having to rely on traditional fiat currency which is easily manipulated by banks and governments bitcoin offers a more sound and reliable alternative. With all of the benefits bitcoin has to offer, it’s no wonder that this digital currency is on the rise!
Bitcoin is the most sound and reliable form of money we’ve ever seen.
How does bitcoin compare to other sound currencies?
Bitcoin has several advantages over other sound currencies like gold and silver. It’s much more portable and durable than gold, and it can be divided into much smaller units than silver.
Gold is also difficult to trade internationally due to its large size and weight. Bitcoin, on the other hand, is easy to trade electronically with anyone in the world and without third party financial institutions getting involved.
Bitcoin also has the advantage of being completely digital. This makes it easier to store and manage than physical gold or silver. And, because bitcoin isn’t controlled by any government or central bank, it’s immune from capital controls and other regulations which can often make it difficult to transact with other currencies.
In short, bitcoin is a sound currency that has several advantages over traditional sound currencies like gold and silver.
It offers several advantages over other sound currencies like gold and silver, and is quickly becoming the global currency of choice. For these reasons, bitcoin is a sound investment that you don’t want to miss out on!
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