These are today’s banknotes, coins, debit and credit cards used in everyday transactions. Such money is easily created by central banks (banknotes and coins) and commercial banks (debit and credit cards) through lending, and it depends entirely on public trust. Because of their unlimited supply, soft money is naturally inflationary and loses value over time as its quantity increases.

Examples: gold and bitcoin. They have limited supply and are hard to produce, so they preserve purchasing power better over time. Gold does not become more expensive by itself – it’s the soft money losing value, which makes gold appear to rise in price.