Keynes famously stated that not 'one man in a million can diagnose' how inflation destroys a nation's currency.
Based on the general misconceptions about how inflation is defined in schools, the public's misunderstanding on the subject and the ignorance/resistance to adoption, we can assume this is still more or less the case.
What do you think the definition of inflation is? Rising prices?
Amazingly, even the Wikipedia page is incorrect.
The true definition of inflation is an increase in the money supply.
Rising prices and decreasing purchasing power are not the definition of inflation, but consequences of the money supply increasing. An example:
Assume the money supply of the US = $100,000.
The Federal Reserve prints $100,000 - out of nothing, backed by nothing. Remember, the US 'temporarily' exited the Gold Standard.
What is our money supply now? $200,000. How much is the dollar worth that all of the holders of the currency have now? 50 cents = 1/2 of the previous purchasing power.
This appears to be a ridiculous example, but let us recall that the Federal Reserve enables banks to only retain 10% of their funds physically at the bank. This is commonly known as Fractional Reserve Banking.
This means that if your account balance at the bank is $10,000, the bank by rule only has to retain $1,000. Assuming this is the case and then let's assume the bank then lends $9,000 to another customer. Does your balance at the bank decrease by $9,000? No.
Now you (Customer A) has $10,000 at the bank, and Customer B who just received a loan now has $9,000. Where did this $9,000 come from?
The bank essentially printed this money out of thin air by adding $9,000 to a digital screen - our money supply just increased by $9,000. Both users have access to the same total funds of $10,000, but rights to spend into the economy a total of $19,000.
Imagine this happening minute by minute as people are able to take out loans from commercial banks, especially since interest rates worldwide have been kept at nearly 0% for nearly a decade.
Understanding this concept explains why banks have withdrawal limits over time.
Fractional reserve banking enabled by the Federal Reserve System implies that every time a loan is taken out, the money supply increases - which by definition is inflation.
Some countries this year have been dealing with the consequences of this problem, Venezuela, Turkey, Italy, India...I am sure more will have more succumb to this inevitability.
Bitcoin has a fixed money supply of 21 million coins for this very reason - to oppose the enabling of this insidious activity by the central banks through the commercial banks. Recalling the article in the genesis block of Bitcoin:
Bitcoin is not anti-bank, it is anti-central bank. This is a key distinction.
If we the people begin to use a currency with a fixed money supply that cannot arbitrarily be increased by a single party this will force all entities on this planet to compete for the same resources - even the government.
This proposition is why some believe Bitcoin's value in fiat will rise "to the moon". If governments print money in order to buy Bitcoin because its citizens use it, the paper currency will be destroyed but its fiat value will exponentially increase (you can profit here if you have low interest loans!). We saw a the tiny beginnings of this occur in December 2017 when fools rushed in, taking out loans to purchase cryptocurrency.
Bitcoin's fixed supply forces those who desire it to compete by producing real wealth (goods and services) to acquire it. No longer can the coins be created out of nothing.
We must all produce, provide services, create and build (not HODL, BUIDL) to obtain Bitcoin.
Bitcoin provides a means to free the market and lift all of those who participate into financial sovereignty and economic freedom.
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