Inflation is the silent killer of purchasing power. Inflation is the decline in purchasing power reflected in the increase in price levels over time. Actually, forget definitions. This will explain inflation (and bonus: deflation) best!
Offlate really has been eating into the economy. A number of nations’ governments have failed to control or manage a steady inflation rate.
So, how do we escape this? How do we protect our hard earned money?
Enter Bitcoin, a hedge AGAINST inflation.
Bitcoin is a deflationary coin. This means the circulating supply of the coins reduces over time. This is incentive to prevent the market from being oversupplied and to improve value of the coin.
Every year the supply is cut down by 2%. The smaller the supply, the higher the demand, the more the price rises.
The argument has proved very solid as Bloomberg conducted this thesis:
“Bloomberg Opinion’s John Authers has done the math: Over the last decade, the headline consumer price index has risen roughly 28%, and denominating that gauge in Bitcoin shows deflation of 99.996%. In other words, what cost one Bitcoin 10 years ago would now cost 0.004 satoshis, or a smaller unit of the cryptocurrency that now trades at around $65,000.”
Still not convinced? I’ll give it one last shot.
I rest my case.