Today, it seems everywhere you look there are negative things being said about bitcoin volatility.
To break up the monotony of borish media sources endlessly discussing btc volatility as if they have nothing better to do than beat dead horses 24/7/365, let's change the subject to a more neglected topic, that of: fiat volatility.
Behold exhibit A.
Image link: https://i.imgur.com/km3TFeR.jpg
This chart would appear to contradict what many say about the US dollar representing a stable value. The buying power of the US dollar appears to be declining significantly over time.
Example of the purchasing power of the US dollar declining: a 2 liter bottle of soda used to cost $1.00 in the united states, not long ago. Today it costs $2.00. If the paradigm shift from $1 to $2 occurs over a 10 year period, we might say that inflation is occurring @ a rate of 10% per year or the dollar is losing 10% of its value per year in contrast to purchasing food items like 2 liter bottles of soda. This precedent of diminishing fiat buying power could apply over our global economy.
So it is possible the purchasing power of the US dollar and other fiat currencies are diminishing significantly over time.
What are everyones thoughts on this?
To break up the monotony of borish media sources endlessly discussing btc volatility as if they have nothing better to do than beat dead horses 24/7/365, let's change the subject to a more neglected topic, that of: fiat volatility.
Behold exhibit A.
Image link: https://i.imgur.com/km3TFeR.jpg
This chart would appear to contradict what many say about the US dollar representing a stable value. The buying power of the US dollar appears to be declining significantly over time.
Example of the purchasing power of the US dollar declining: a 2 liter bottle of soda used to cost $1.00 in the united states, not long ago. Today it costs $2.00. If the paradigm shift from $1 to $2 occurs over a 10 year period, we might say that inflation is occurring @ a rate of 10% per year or the dollar is losing 10% of its value per year in contrast to purchasing food items like 2 liter bottles of soda. This precedent of diminishing fiat buying power could apply over our global economy.
So it is possible the purchasing power of the US dollar and other fiat currencies are diminishing significantly over time.
What are everyones thoughts on this?
This question deserves a detailed explanation so stay with me. The canadian dollar and the US Dollar are both affected by oil prices but DIFFERENTLY!
Oil Prices and Oil Exchange
In 2014 when OPEC (Organization of Petrol Exporters) decided that they would maintain the supply of oil despite its plummeting prices this had detrimental impact on the Canadian economy, because Canada is one of the largest exporters of oil to the US this meant that it became more difficult for their oil prices to remain competitive. It became more difficult for Canada to sell oil at profitable prices, this sent the Canadian economy down the drain. However the US Economy flourished because of how easy it was and still is to get oil.