What is debasement?

Debasement is when money loses its value because it’s made less strong.

Imagine you have a toy box full of shiny gold coins, each one feels heavy and special. That's like having real money with lots of value. Now, someone decides to melt some of those coins down and mix in bits of silver or even tin. The new coins look similar, but they’re not as strong or valuable. This is debasement, making money weaker by using cheaper materials.

Think about your favorite snack. If you used to get a big bag with 10 cookies for $2, but now you only get 5 cookies for the same price, it feels like the value went down. That’s what happens when money is debased, people need more of it to buy the same things.

Sometimes leaders or kings want more money to spend on big projects or wars. By making coins lighter and cheaper, they can get more coins made without using as much real gold. It’s like taking a shortcut, but over time, everyone notices that their money is not as strong anymore, and things cost more.