Fiat currency is stealing from you.
In 2022 the reported inflation rate was ~9%. That means, if you made $100,000 that year, you lost an extra $9,000 in value! 🤯
And that's not on income, that's on any money you have saved. So if you had $50,000 in savings, that's an extra $4,500 lost. We're up to $13,500 extra you paid to the government (they printed the money), on top of what you already pay in direct taxes!
This is why crypto has really taken off. People are tired of losing money all the time. They want to save, earn, and invest.
Taxation is theft. Inflation is theft. Crypto is the way.
Reminds me of this 👇
It's insane.
It's a heafty chunk that's for sure and we are still around 4% which is high.
Yes. And the USD is the best fiat. Other countries have it worse.
If the inflation was 9%, the loss is $8,256 for $100,000. If it was $109,000 the loss caused by inflation is $9,000. It is a tiny nitpick. The core of the argument is completely right.
How do you figure?
9% inflation mean what cost $100 is now costing $109.
100*100/109 = 91.743 (lost 8.257 in value)
25% inflation would put the current cost at $125.
100*100/125 = 80 (loss of $20)
200% inflation => $300
100*100/300 = 33.33
Hm ok