Why Is Bitcoin Considered Sound Money?

Bitcoin is often described as “sound money” because it has properties that make it resistant to inflation and political interference. Its supply is fixed, predictable, and transparent—anyone can verify the number of bitcoins in existence at any time. This is in stark contrast to fiat currencies, whose supply can change rapidly based on economic policies or political decisions.

Sound money also requires durability, portability, divisibility, and fungibility—all characteristics Bitcoin excels in. You can divide Bitcoin into 100 million smaller units (satoshis), store it indefinitely, and move it globally with ease. Unlike physical assets, it doesn’t degrade or require specialized facilities to keep safe.

Perhaps the most important aspect is neutrality. No single country, company, or group controls Bitcoin. This makes it a global monetary system available to anyone equally. In an increasingly interconnected world, sound money that transcends borders offers an alternative to national currencies whose value can be eroded over time.