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RE: Eroding our Purchasing Power

in #life6 years ago

At this point though isnt inflation just a fact of life? Realistically, there is no true way to fix it, unless you just let everything go bust..then start over...I mean there are a ton of theories, but no real evidence that any of them work...

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There is a way to fix it, and it worked. For example, lets take the Euro. Lets say the worth of the existing bills all over the world is 1000 Euro, then it should be backed by lets say gold. If you print more money, value of things even your income goes up. If there is less, value of things go down.

The problem is, the money doesn't really have a value because it isn't backed. So you print more, value of things stay the same. But that is way too simplified, you probably knew this. But what I'm trying to get at is, that if it is backed by something, it can be fixed.

Therefore, crypto, it always haves a fixed value, because the can never be printed more.

I feel like I made this whole response way too messy, my apology's for that, I'm quite sleep deprived.