Why Bitcoin is the Ultimate form of sound money

The most foundational principle to Bitcoin’s claim as sound money is the scarcity created by its issuance schedule and its supply cap of 21 millions coins. These facts are thought to be immutable. They are, of course, written into Bitcoin’s code. But even more important, is that these ideas are dogmatic to what it means to be Bitcoin. Whereas code can be changed, Bitcoin cannot be Bitcoin without these fundamental principles. More so than the code, it is the sanctity of the these principles, an unwillingness to compromise on them and a reluctance to rely on hard forks as the vehicle of change within the Bitcoin community that truly secures Bitcoin’s scarcity. Although the fast-paced, innovative hard-forks used to change the Ethereum protocol is useful for a project whose main aspiration is to be a ‘world computer’ and thus efficiently run decentralized applications, it is a poor paradigm to have with regards to sound money. Ethereum thus faces a catch-22 in terms of it’s claim as being ‘ultra-sound money.’ Ethereum currently has no hard cap on its supply. It cannot simultaneously change its issuance and cap in order to make its tokens scarce and at the same time assure the continued scarcity of tokens by claiming that these principles will not change. The very act of pulling off such a change only proves that a change of this type is possible within the network. Scarcity is the immutability of these principles. It is why Bitcoin will remain the ultimate embodiment of sound money.

submitted by /u/cjwin1977
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