Moreover, the Last round od QE has generated a massive redistribution of wealth. The bottom half of retirees have been disproportionately hurt as they normally rely on short term rates to maintain their standards of living.
Fiat’s inflationary nature is a systemic harm to society: people are forced to seek higher-yielding, riskier assets to keep pace with inflation, which leads, out of necessity, to speculative bubbles and financial instability. At the contrary, btc incentivizes savings and long-term thinking, promoting financial security and stability, and protects individuals from the systemic harms embedded in inflationary fiat systems.
Currency debasement has plagued societies for centuries, from the Roman Empire’s coin clipping, the Weimar Republic’s printing crisis, to the abandonment of the gold standard in 1971.
Additionally, debasement isn’t always linear and is subject to central bank policy shifts, economic crises, and political intervention.
Bitcoin is a revolutionary response to the historically pervasive issue of unpredictable currency debasement.
Real world fluctuations in fiat currency value are way more harmful than the apparent volatility of btc, as purchasing power erodes more rapidly with each cycle of fiat debasement, contrasting it with Bitcoin’s consistent, unchanging supply schedule.
As debasement accelerates, the value of btc relative to fiat trends toward infinity. This diverging trajectory highlights btc’s robustness against fiat’s structural weaknesses.
I have stopped looking at money per se but rather the size of the central bank's balance sheet and I deflate that by nominal
GDP to describe what I call liquidity although that really has to be weighted by the maturity structure of the central bank's balance sheet which is highly skewed right now. This particular measure had typically been between 5 and 7%, during the great financial crisis it got up above 20% and started coming back down when the balance sheet got smaller and nominal GDP got larger but it's a measure of how much the central bank's balance sheet can support transactions demand as measured by nominal GDP.
But it's actually the shrinking of the unit of account that is we're measuring everything with smaller units. So instead of measuring things with the yardstick we're measuring things with a ruler.
That's why many people have argued for a gold standard but if you go back over the past 200 years prices would rise after every major gold find such as the gold rush and San Francisco in the 1850s and the Yukon find in the 1890s.