Quote from: Lucius on March 23, 2022, 12:08:58 PM

Quote from: Rockstarguy on March 23, 2022, 10:58:47 AM

I Have been observing the way price of things are going up right from 2013 up till this time , add to the pandemic in 2019-2020 that caused high level of inflation to the world.

Some natural inflation is quite normal and expected, and the average person will certainly not feel it too much on his skin if his government adjusts wages to rising inflation. Some 10 years ago, the price of 1 kg of bananas in my country was about 0.7 EUR, today it is about 1.4 EUR, which means that it has doubled - but the average salary has more than doubled, so no one complains about the price of bananas.

The problem is when the price literally jumps by 100% overnight, so the price of 1 liter of sunflower oil is now just under 3 EUR, and until recently it was half as low. No country can solve this problem in the short term, which means that purchasing power is drastically reduced, and people have to give up a lot of things to survive. The pandemic and economic policies of most countries of the world are paying off, and on top of all that, Russia's aggression against Ukraine is making the situation even worse.

I'm not a pessimistic person, but hard days are ahead of us - luckily for those who were intelligent enough to invest in Bitcoin, things will still be a little easier than for the average man who is completely addicted to fiat.

There's nothing natural about inflation. Central banks purposefully use inflation to keep currency in circulation in order to control economic activity. The banks target it at 2 percent, or so we're told. The reality is that endless printing results in the inflation rate much higher than what they target. The normal supply and demand model shouldn't be influenced by the total money supply (at least that would be a problem Bitcoin would solve). The pandemic suppressed the supply, but demand increased when most governments decided to close up their economies and stimulate them artificially by printing currency.