Most of the world that deals in the US dollar is in denial about the inflation problem. For some reason, there is a misguided belief that the 2% inflation (they hope) that is designed into our fractional reserve currency system is acceptable. But the reality is that the Fed has been creating money out of thin air with Quantitative Easing for decades and inflation is now at the tipping point of growing out of control.
Inflation is the increase of money but the decrease in purchasing power. A dichotomy. One would think that simply having more money would have more buying power. But the reality is that printing money out of nothing devalues it worth because nothing stands behind – no work, no energy, no scarcity = no value.
Once the US permanently detached from the gold standard in 1972, the dollar inflation began at a fast pace whereby the dollar of 1972 has lost 90% of its value. When compared against bitcoin, the last time bitcoin was valued at $1, bitcoin is now valued at $40,000 US (July 29, 2021) and today’s dollar is worth $0.83 from the dollar of 2012. Is that an eye-opener? It should be.
How about this graphic from @anilsaidso….
This amazing graphic shows that in 2011, the median house cost $225,000US but would have cost 756,333 bitcoin. It also shows that the median house cost in 2021 cost around $350,000US but only 12 bitcoin. That seems to be an amazing store of value to me.
Looking at the lumber price image, this shows some of the same concept. $1000US bought significantly less lumber year over year from 2020 to 2021. But the same lumber cost significantly less BTC for the same $1000US based on bitcoin’s growth in value.
I choose bitcoin. Opt out of the fiat system.
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