Sound money principles are the criteria by which a monetary asset is judged a reliable store of value and medium of exchange: scarcity, durability, divisibility, portability, fungibility, verifiability, and resistance to debasement by any issuer. Rooted in classical and Austrian monetary economics, they are frequently invoked to argue that a fixed-supply, credibly neutral asset preserves purchasing power over time. They form the economic case advanced for Bitcoin as a monetary good.
Content
- Drawing on classical and Austrian monetary thought, these principles emphasise a credibly fixed supply that no issuer can inflate away. They underpin Bitcoin as Money arguments and the broader Bitcoin Value Proposition, where a capped 21-million-coin issuance and decentralised verification are presented as a modern instantiation of historically sound monetary properties.