"Soundness" refers to the demand response of the money. Given increased demand for the money, can the supply be increased to absorb that demand while maintainin

"Soundness" refers to the demand response of the money. Given increased demand for the money, can the supply be increased to absorb that demand while maintaining current purchasing power? Fiat money can be created or destroyed at any time, so it is the most unsound money. As purchasing power rises (falls), the central bank can create (destroy) money at will to counteract the trend. Gold exploration increases as the price rises, causing the supply to grow to meet this demand. Yet it is hard to mine gold, and its scarcity means that the increase of supply relative to the existing stock is small (roughly 2% / yr). Thus it is more sound than other metals, which are easier to mine. It is also much more sound than fiat money. Bitcoin's monetary base increases algorithmically, so there is no supply response to increased demand. On top of that, the monetary inflation rate tends toward zero over time. The supply will reach a maximum and stop increasing. This level of soundness is greater than that of gold in the long run. A great scholarly treatment of money is The Ethics of Money Production[1] [1] https://www.goodreads.com/book/show/6520108-the-ethics-of-money-production https://www.goodreads.com/book/show/6520108-the-ethics-of-mo...