Oddbean

Bitcoin is the best money humans have ever invented. Bitcoin is sound money… but at the same time.. Bitcoin it is not sound money! How can that be the case? Let’s explore the history books https://m.primal.net/LmKd.jpg The concept of sound money dates all the back to ancient Rome when Silver coins were the norm in everyday commerce As Rome squandered its wealth and debased its money, the silver content in its coins decreased dramatically https://m.primal.net/LmKe.jpg Roman soldiers and merchants grew weary of the debased coins and learned to detect them striking the coin against a hard surface Silver coins made a distinct noise, symbolically called the "ring of truth", while coins clouded with other medals bore a different tone https://m.primal.net/LmKf.webp When England’s Royal Mint introduced paper money, the citizens rebelled, wanting only sound money, fearing debasement of paper (or easy) money The first Royal Mint's banknotes were different than today's paper money, because they at least contained a 'promise to pay' https://m.primal.net/LmKk.jpg In the 19th century USA, the “ring of truth” was even used to identify several counterfeiting scams Since ancient Rome, the principles of sound money have travelled far across time and space, all the way to cyberspace Bitcoin’s digital presence means a “ring of truth” test is impossible Yet, at the same time, bitcoin’s scarce, self-custody and verifiable properties enable Bitcoin to champion all of the characteristics of sound money Bitcoin is immune to debasement and inflation 🔊💰