Edition #33: Sounds like Money
Plus: Copy Congress Stock Trades, Home Prices, Kind of Millionaire, Motley Fool Review, and Squatty Potty.
Money Mantra of the Week: You are of sound mind and money.
In this week’s main article I dive into the concept of “Sound Money.” Then I cover these shorter stories: Copy Congress Stock Trades, Home Prices, Kind of Millionaire, Motley Fool Review, and Squatty Potty.
The Sound Money Debate: The Dollar vs Bitcoin vs Ethereum
Bitcoiners are salty with the Ethereum community for creating a new meme: that Ether is not only sound money, but ultra sound money.
But first, I had to learn what sound money event meant.
Some say that origins of “sound money” comes from the recognizable clang of metal when gold or silver coins drop on a hard surface.
Sound money in its most basic terms is money that retains it’s value over time. It also should exhibit other properties like being 1) divisible 2) durable 3) recognizable 4) portable and 5) scarce.
>>> Check out this episode of the Investor’s Podcast Network to learn more
Scarcity is at the heart of the sound money debate.
Cryptos are generally scarcer than the U.S. dollar, which has been printed in the trillions to help deal with the pandemic.
- Bitcoin’s supply: capped at 21 million Bitcoin that could ever be mined or in circulation.
- Ethereum’s supply: currently ~117 million Ether without a cap.
Ethereans suggest that ETH is becoming ultra sound because of the recent network upgrade EIP-1559, which burns Ether, removes it from the supply, and may have the possibility of making the network deflationary over time.