Does sound money have to be Private?

[iBaba]

What are you really implying? Sound money, as in, how?

Fiat money was designed to be centralized and handled with the help of financial institutions such as banks, which usually collected their instructions from higher authorities like the government. Because of how they chose to run the (our)  monetary system, you cannot say that such money is un-sound.

Exactly, and as a matter of fact, we need to always understand that both the centralized system of money and the decentralized monetary system serve different purposes and one cannot rule out the other because, at the end of the day, people would have reasons to why they should keep using one or the other.

The decentralized monetary system is that which you can use within your purview and you can have a high level of control over it. Whereas a decentralized system is being managed by banks and, by extension, the government. Government today can decide to change the value of the money or even the currency type to something else and you have no choice than to follow.

But, at the same time, the government might be doing some of those things to retain the integrity of the currency. you can't say that the fiat currencies are unsound because you have chosen to go with a decentralized system. Governments are looking at how they can better their local currencies and that is why they will always work hard on their economy so that their currencies can gain value in the sights of other currencies across the globe.

When you are using a decentralized system, it's like a global and individual monetary system but when you are using a centralized system, it's between you and the government. So, the government can have a control over how the money would be valued by you and across the world.

[Cryptomultiplier]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

When it comes to the digital age, computers has become so advanced and  programed to track every online data. Banks connect to the world and deliver each transaction by the internet and any other form of currency which exist has some connections to the internet as long as it has a central bank and has its currency traded on the exchange market as well as has a reserve.
Even P2p sometimes require escrow to function in accordance. It is traditional for other payment methods to be decided upon without any third party, and that's why gold remains the best alternative means for untracked and private transactions.

[Ben Barubal]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

     Of course, when fiat is understood, it is controlled by the government, and when it is placed in the bank, it is monitored by the company of the bank. That's all.
So in this day and age, it seems that no matter what we do to be anonymous, our government will still find out.

     That's why we are here in the crypto space, so that any transaction we do can remain anonymous when we make a profit in the field of cryptocurrency business.

[Apocollapse]

Sound money systems aim to maintain a stable value over time, avoiding drastic fluctuations or volatility that can disrupt economic activities.

Dollar isn't even stable at all, technically the value is like shitcoins since November 2017, gold also same, it's not stable too. The reason why people think Bitcoin isn't stable because they always compare Bitcoin to USD, gold, local currency etc etc. While actually 1 BTC = 1 BTC.

Bitcoin isn't even private, anyone can trace where your coins belongs to since Bitcoin using public blockchain.


https://www.xe.com/currencycharts/?from=USD&to=BTC&view=10Y


https://www.xe.com/currencycharts/?from=USD&to=BTC&view=10Y

[davis196]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

I asked Bing AI about sound money and here's the answer:

Sound money refers to a form of currency or financial system that possesses the following characteristics:

Stability of Value: Sound money maintains a relatively stable purchasing power over time. It is not prone to sudden and extreme fluctuations in value.
Preservation of Real Value: It ensures that financial claims denominated in fixed nominal amounts (such as savings deposits, bonds, employment contracts, and pensions) retain their real value. In other words, it protects against erosion due to inflation.
Trust and Security: Sound money fosters trust and confidence in the financial system. People can rely on its stability, which promotes social harmony and cohesion.
Hard Money Attributes: Sound money exhibits properties such as high divisibility, salability across time and space, and low-time preference. These attributes contribute to its reliability and utility in free market economies.
In summary, sound money is a crucial foundation for economic stability and prosperity. It provides a reliable medium of exchange and store of value, benefiting individuals, businesses, and societies as a whole. 💰🌟

Fiat money isn't sound money and it never will be. It doesn't matter if it's digital fiat or paper cash. Fiat money lose their value in the long term.
Bitcoin isn't sound money because of the price volatility. We need a financial asset with stable value/price.
Gold and silver coins are maybe the only good example of sound money.
The preservation of value is the biggest quality of sound money, privacy of transactions isn't mentioned anywhere as a quality, but I think that transactions with gold and silver can be really private(if you are transacting with a trusted trader).

[|MINER|]

Fiat is a centralized currency.  It will always be traded under third party monitoring.  This is how it was made.  It will be under the control of a country's government.  You cannot call it wrong or think of correcting it because it is made that way.  Bitcoin, on the other hand, was created as a decentralized currency.  The owner can do the transaction alone and there will be no other third party presence.  Currency should be accepted and used as it was created.

[Frankolala]

What is sound money? Because sound money is defined as money that is basically not volatile. It’s stable and does not get sudden increases or decreases in value.

Another example is monero. You can just see them as alternatives but which can not fully replace fiat.

Monero is a privacy coin. Bitcoin is already decentralized in nature but monero offers an extra layer of privacy if you must need it. Of course, it can nit replace fiat. Even bitcoin is still not yet fully adapted let alone monero. A coin can never replace fiat unless the government fully accepts cryptocurrencies.

Even if government fully accepts cryptocurrency, bitcoin cannot replace fiat. We have El Salvador that made bitcoin a legal tender, and their reserve is in bitcoin. But if you go to El Salvador, citizens hardly use bitcoin but their local currency. Since bitcoin cannot be printed, and it is not from the government, it will be impossible for it to replace fiat.

Fiat has being there ever since, and that is why you see that fiat will always be the currency that all countries will always use, no matter what kind of currency that is created in the latter. Digital currency is a new technology, and can only serve as an alternative to fiat.

[we-btc]

If countries continue to allow their governments to devalue their currency then we are doomed to continue the cycle of inflation due to the creation of money by the elites.

When an entity creates more of a currency it reduces the value of that currency. If a government is given the power to create currency then they will do that until the countries currency is worthless.  This has happened time and time again.
To stop the cycle, sound money must have a limited supply. Bitcoin will only fix this if it is adopted as the primary currency for a nation.

In order for Bitcoin to work as it was intended it also needs to be peer-to-peer and individuals must self custody.  If we don't do this then financial institutions will become the power centers of a country.

By using Bitcoin peer-to-peer you free your self and your country from this financial misconduct and you give everyone back the financial sovereignty they deserve.

[Dunamisx]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

If you think there's something to doubt about the way the fiat currency operates under the authority of government and other commercial centralized intuitions, then why not consider bitcoin for an alternative means of making payments and your only reliable currency, since one of the reason this was introduced was to fix all the challenges we have been through with the use of a centralized commercial institutions, try crypto and see if the difference is there between fiat and bitcoin or not.

[jrrsparkles]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

Do you have any proof that 95% of total printed US dollar is in digital format?

US dollar is one of the most used fiat all around the world and it's accepted every corner because of USD is the reserve currency. If I am not wrong everyone who hoards black money irrespective of their government prefer USD and Gold that makes your argument of every transaction using fiat is tracked by government as invalid.

[tsaroz]

True but we are left with no choices and we are too small to fight. Crypto might mean freedom to some but it would be stupid to believe we are not being monitored. Every money coming in and coming out are closely being tracked and most of the large transaction within the network too are being monitored. Shutting down of mixers, KYC are a few examples that proves we don't have option of not being tracked.
There might be some secure chains like monero but getting in and out your money from it could get you into problems.And for general people who have nothing big to hide  I guess it's a compromise we all make for the greater good of our society.

[aylabadia05]

Can you consider a transaction that is monitored and approved sound?
I think for a money to be sound you must be able to transact privately with no third party in the transactions.
What do you think?

It doesn't matter when fiat currency transactions can be monitored by authorized parties as long as I don't use them in the right way.
Wanting to hide every transaction so that it cannot be tracked is something that cannot be avoided because fiat currencies are centralized.

I cannot use Bitcoin for transactions like fiat currency in everyday life because it is part of the acts that are prohibited by law.
Most to make my finances healthy, I invest in several types of investments including investing in Bitcoin.

[we-btc]

True but we are left with no choices and we are too small to fight. Crypto might mean freedom to some but it would be stupid to believe we are not being monitored. Every money coming in and coming out are closely being tracked and most of the large transaction within the network too are being monitored. Shutting down of mixers, KYC are a few examples that proves we don't have option of not being tracked.
There might be some secure chains like monero but getting in and out your money from it could get you into problems.And for general people who have nothing big to hide  I guess it's a compromise we all make for the greater good of our society.

The 4th Amendment to the US Constitution:
"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to e seized."

I think the right to Privacy is fundamental.  An invasion of that privacy a key part of an individuals sovereignty. Because we would like to exchange goods and services with another person does not represent consent to give up the right to privacy.

Bitcoin eliminates the 3rd party so that our transactions can be private. 

[Fortify]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

You know that 99% of the worlds banking system relies on this, in your words, "unsound" system quite successfully and without fuss. Money is just a way to exchange value from one place to another. People used to barter sheep for shovels, or coal for a woolly hat, but that is too impractical so money was created to become effectively an I owe you note - allowing for much easier trade. That's all there is to it, if both parties are happy with the transaction then it doesn't really matter whether you think it is sound or not - the business is still being conducted. Transactions are not "approved" by the bank in the way that you seem to suggest, if a bank did not complete a transaction they would quickly lose the faith of the public and implode as a business.

[we-btc]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

You know that 99% of the worlds banking system relies on this, in your words, "unsound" system quite successfully and without fuss. Money is just a way to exchange value from one place to another. People used to barter sheep for shovels, or coal for a woolly hat, but that is too impractical so money was created to become effectively an I owe you note - allowing for much easier trade. That's all there is to it, if both parties are happy with the transaction then it doesn't really matter whether you think it is sound or not - the business is still being conducted. Transactions are not "approved" by the bank in the way that you seem to suggest, if a bank did not complete a transaction they would quickly lose the faith of the public and implode as a business.

Great points.  Banks are trusted institutions. Bitcoin is trust-less.  Because there is no 3rd party to trust, the transaction is more efficient, privacy is better and the currency can't be devalued by a centralized group.

Banks are stealing value from the holders of the currency every day by printing it.  When you give them your value for safe keeping they loan it out on risk and make you a subordinate lender.  I don't see this as sound business practice. I see it as risky behavior that only benefits the Banks and puts the producer(you) in a risk on position. Because of these practices, In 2008 the Banks were insolvent and the solution was to print more money.  This devalued you currency to bail out the risk on institutions who provide almost no value to our system and should have gone out of business.

Banks are supposed to hold your money for safe keeping.  They Don't!!

If you think that is a sound system and a sound currency I would take another look.

[Mahanton]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

There's no way that you could really be able to hide off your transactions unless if you are that seated into those elites and vips or shall we called those who are sitting on the top then untraceable transactions could be possible since there's no one above you that would really be monitoring but if you are someone whose really just that an average joe then there's no way that you could really be able to make yourself that having that private transactions. Everything could really be seen when you are really that  dealing or making transactions with fiat and this is how centralized it is. This is why that crypto or Btcoin did really make out such popularity just because it did really remove that kind of centralization when it comes to transactions which there's no 3rd party involved.

Whether you do like it or not, if you do make yourself having those fiat transactions then everything could really be seen and checked and there's nothing you can do about it.
It would really be just that a common sense and even just that typical. Ex. you've been transacting some bank transfers which hits up the threshold then
you would really be asked for some verification on where those funds came from. lol

[Upgrade00]

but as bitcoin technology is advanced and secured it can also be used for doing hidden transaction or transactions that is made because of someone doing a crime

There are no hidden transactions. Everything is publicly accessible as it's a public ledger. On crime, that is not peculiar to Bitcoin and it's also not the most used for illegal transactions, not even close.

[leonair]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

If you use FIAT money then you have to go through the bank's authorization for every transaction.  Because it is centralized.  The government will know all the transactions you do through the central bank audit information.  Crypto can be a solution to this.  If you use crypto and use a non-custodial wallet for it, you can make transactions to maintain privacy.  But here it is a matter of how you buy the cryptos.  While buying them you need to use the banking sector which links you to the same place

[we-btc]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

If you use FIAT money then you have to go through the bank's authorization for every transaction.  Because it is centralized.  The government will know all the transactions you do through the central bank audit information.  Crypto can be a solution to this.  If you use crypto and use a non-custodial wallet for it, you can make transactions to maintain privacy.  But here it is a matter of how you buy the cryptos.  While buying them you need to use the banking sector which links you to the same place

I agree. That is why they are regulating the exchanges and put in place the KYC rules. What reason would there be to stop people from exchanging freely and privately? 

Imagine if everyone used Bitcoin and you could go down to your local bike shop or bakery and buy some Bitcoin using your own Bitcoin node.  This was the vision of the creators of Bitcoin and that is why peer-to-peer transactions are so important.

I was just watching an interview with the CEO of Strike.  Companies like this are trying to benefit from the hype of Bitcoin without realizing what damage they are doing to it by promoting the convenience of the transaction for a small fee.

[STT]

Fungible is always the big word for a proper currency, openly plainly acceptable would seem to be implied in the best liquidity that a currency requires.   A private, dark pool hidden value seems to suggest opposite values to this basic tenet for currency.   There are no absolutes, either are possible but if we are talking about a competitive market and a variety of choices for currency as the modern world is especially online then I'd go with the open standard over the unknown hidden elements of some alternatives.