December 22nd brings a holiday that reminds everyone of the importance of having a stable unit of monetary value. Sound Money Day celebrates the idea of having a reliable value of money for exchange and trade, and a safe store of wealth for the future. Sound Money neither rapidly appreciates nor depreciates, providing instead long-term stability.
Why is sound money important for exchange and trade? Imagine needing to lose weight and simply altering the scale to read the desired number rather than actually shedding the pounds. The number on the scale might change, but the harsh reality in the mirror remains the same. Similarly, an unstable currency provides a number in the form of prices, but those prices cannot be relied upon from day to day. In fact, in a hyperinflationary scenario, prices literally can change by the hour. No consumer or enterprise can efficiently operate in such a miserable environment.
Sound money is also important for the future. People work hard to set aside surplus earnings in the form of savings. Without sound money in an inflationary environment, those savings evaporate in a loss of purchasing power that is effectively no different than losing money to theft. There is little incentive to save for the future, and economic participants becomes stuck in an endless present.
Sound Money Day is celebrated every December 22, a date that reflects the last time a dollar was worth a dollar.
The Role of Cryptocurrency
Will Crypto and DeFi provide the sound money that people need so desperately? This is an open question, but Sound Money Day recognizes the critical role that Crypto will potentially play in the future of finance. Decentralized Finance, in particular, prevents abuse from centralized actor diluting the currency.
Several of the characters in the upcoming Zombies of Things book series either made their fortunes in Crypto, or are children of those who have. In 2044, the year the book series begins, Cryptocurrency and NFT’s fortunately provide future workers and savers a sound and effective way to exchange and to save.
How to Celebrate
Hopefully, people won’t wait until 2044 to celebrate Sound Money Day. The holiday is best observed by learning more about topics like inflation, wealth preservation and Crypto. Use the hashtag #SoundMoneyDay on social media to let people know that you value the idea of money being sound.
What is Sound Money? Sound Money Explained
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