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It is no coincidence that there have been 30 different examples of hyperinflation 💸 since 1920, after WWI.
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Even though at this point most countries were on a #gold #standard , governments were still able to print 🖨 lots of money to fund the war.
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This allowed governments to pay for #war 💢 without directly taxing citizens, but instead forcing them to pay through #inflation .
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It should not be a surprise that following #WWI, as inflation wreaked havoc, we had the Great Depression 📉.
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Typically the Great Depression, gets blamed on #evil #capitalism 🧟♂️, but it is actually the product of governments unnaturally altering the money supply 🖨, in this case to fund WWI.
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When money is not scarce enough 💰, it encourages people to borrow/spend more and leads to misallocation of resources and eventually capital waste 🌋.
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Rising prices of goods 📈 will always follow an inflation of #money supply since there is always a limited number of actual resources, no matter how much money you print. Thus once resources get scarce, their price will start to quickly rise negating any “value” gained by printing the money 🖨.
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This leads to the misallocation of resources 🔀 as an #investment that once looked good, is no longer profitable as the cost of resources goes up.
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Sadly, by this point it is too late as capital investments and projects have already begun. Businesses go bankrupt, leaving projects frozen ❄️, unfinished, and wasting all of the resources that went into them.
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Many people lose their jobs 😢quickly as all of the mal-investment in the #economy drys up.
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In the worst cases, this type of economic turmoil resulted in some of the most evil the world has seen, the #Nazi party of #Germany 🇩🇪.
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Without these drastic boom and bust business cycles 🎢, societies have shown to grow steadily, peacefully and prosperously. Unsurprisingly, sudden, drastic downturns in wealth brings out the evil in people.
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Due to its resistance to hyperinflation and inability to increase supply to fund wars, Bitcoin 🥇could save millions of lives in the future 💭.
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