The only currencies that have never lost their value since 1400 years ago are the dinar and dirham. Apart from dinars and dirhams, their value will also be lost, including dollars. Because money made of paper does not have the same intrinsic value as currency.
1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle.
This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams.
I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further.
1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle.
This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams.
I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further.
Each Fiat currency is backed by debt. In other words, they're backed by nothing. Back then, the USD was backed by Gold. But the US government had to change this to benefit itself. Inflation only makes the rich, richer and the poor, poorer. Central banks can print as much money as they want without affecting them whatsoever. They're the ones who make the rules of the game. And there's nothing we can do about it.
If you ask me, I'd say inflation is only necessary to encourage spending of Fiat currencies. Making them deflationary will encourage people to hold them more than they would ever spend it. Just like what's been happening with Bitcoin today. Everything done in moderation is good. Inflation only becomes a problem when it's too high. Keeping levels steady will ensure a smooth running of the economy. Hopefully, central banks will fix high inflation rates before it's too late.
Bitcoin's valuation as a safe haven, like digital gold, makes it deflationary, not merely its supply. What happens when no one spends and everyone holds? Stagnation. More than keeping assets, the economy thrives on transactions. What if we could create a stable currency that encourages spending without depreciation? This demands monetary policy innovation, not merely acceptance of inflation manipulation