Sound Money

Sound money describes a type of money that keeps its value steady over time and resists significant loss due to debasement or inflation. Because sound money is stable and dependable, people can trust that what they save today will have similar purchasing power in the future. This reliability is essential for a healthy economy, as it encourages savings, investment, and long-term planning without the constant fear that money will lose worth.

While “sound money” and “hard money” are related, they differ slightly: sound money emphasizes consistent value over time, while hard money refers to how difficult it is to create more of that currency. Bitcoin is often cited as sound money because its supply is capped and it can’t be manipulated easily, making it resistant to inflation and value loss.

The phrase “sound money” comes from a time when people would check the authenticity of gold coins by listening to the ring they made when struck. A clear, ringing sound was a sign of genuine value.