Hard Money vs. Fiat Money 🪙
Most national currencies like the USD are fiat money that governments can print infinitely. This continuous printing leads to inflation, reducing their value over time 💵
Since 1972, the real value of US dollar has dropped by more than 90%
In contrast, "hard money" like Bitcoin or gold has a limited supply that can't be easily inflated. Thanks to this scarcity, these assets tend to hold their purchasing power much more effectively in the long run 🌉
When Bitcoin is denominated in USD, the price is "programmed" to rise, not only because demand for BTC increases, but also because the dollar depreciates.
🫴 A simple strategy to protect your wealth:
Buy and hold hard money while using fiat money for everyday spending or borrowing. This approach helps maintain your purchasing power in an inflationary environment 🛍