"Ooooh yeah! Let me tell you something, brother! The difference between sound money and fiat currency is like night and day, oh yeah!
When we use sound money, like gold or silver, their value is inherently stable. Why? Because the supply of these metals is limited and their value is universally recognized. So, when you're dealing with sound money, you can rest assured that your currency won't suddenly lose value overnight, brother.
But when we use fiat currency, like the paper money we use today, things get a little more unpredictable. See, when governments and central banks control the supply of money, they can print as much as they want, brother. And when they do that, the value of your currency can start to go down, down, down. That's because there's more of it available, but the value of goods and services on the market that we trade for? They don't suddenly increase in the same amount. So you're left with a situation where everyone has more paper in their pocket, but things don't cost proportionally more (they could actually cost the same or change just a little) and this decrease the purchasing power of the currency.
Now, don't get me wrong, fiat currency isn't all bad. It allows for greater flexibility and creativity in monetary policy, like quantitative easing in times of emergency that could be used to inject liquidity to the economy, but there's a flip side to everything brother. It's just that sound money gives us that gold-standard stability that we can always rely on.
In fact, history provides some pretty clear examples of the differences in currency stability between sound money and fiat currency regimes. During the Bretton Woods system from 1944-1971, which was a sound money system, inflation was almost non-existent and prices for goods remained relatively stable. But once fiat currencies took over, we saw more stagflation and hyperinflation scenarios in the 1970s and 1980s, oh yeah! And we could also mention events like recent crises where we can notice the substantial impact and reforms done to prevent economic disasters.
So let me tell you something, brother. When it comes to currency value stability, sound money is the way to go. But we also must understand that socio-political, environmental and economic systems are very complex and the idea isn't to have a "perfect system" but to strive for a functional one with the least amount of internal/external biases that could increase speculation or cause disruptions. Ooooh yeah!"
( Sources:
Bretton Woods System:
https://www.investopedia.com/terms/b/brettonwoodsagreement.asp
Inflation/Hyperinflation examples:
https://www.cnbc.com/2019/08/20/wei...tion-explained-and-what-it-means-for-you.html
Sound money vs Fiat currency stability:
https://mises.org/library/what-has-government-done-our-money )
