Capitolism is a wonderful system of incentives, which promotes hard work, innovation and both technological and financial progress.
However I think back around War World One the way that governments financed wars changed. And that changed everything.
Previous to World War One a government had to raise money, real fiat currency of the country to buy guns, uniforms, bullets and train men to kill each other in various ways.
Because the government had to raise money from the people, and the people had to send their sons and sometimes daughters to die. The people had to be convinced of an existential risk... the enemy had to really threaten their lives and livelyhood.
Then the world changed overnight
The Bank of England didn't ask the people for money to wage war, it printed money, and paid for the war with a printer, not by raising money from it's people.
This led to the worst war, the world had seen up until then, because every country suddenly could raise money for war without convincing it's people that this war was worth fighting and dying for, and not only sacrificing their sons, but also sacrificing their money. And the war could go on for years, because the money to support it seemed endless. The only thing we ran out of was people to die.
Damn, lets pause to reflect on this sober thought
The deaths of millions of people was just one horrible thing about the war
World War one was horrible not just because of how widespread it was, and because of how many people died, and how much of the world was devastated.
But a truly important thing is frequently overlooked by historians, governments stopped asking their people for permission to wage war, governments started waging war in their people's names and without their permission, by printing money.
This act of printing money gave people the impression that the people weren't paying for the war, the government was, by printing money.
However this is false, because printing more of something invariably increases the supply and reduces the value.
When you print currency, increase supply of dollars, pounds, euros, yen, etc chasing goods and services, the demand for goods and services increases their cost. It is simple supply and demand economics.
And while you can read complicated economic formulas which claim this isn't the case, so the citizens don't blame money printing for inflation, the history of prices is clear, we have sufferred from inflation ever since, the buying power of currencies is reduced, and inflation becomes the rule, rather then the exception of everyday life.
The other problem, is when the government can print money to prepare for war and wage war, this creates a huge demand for goods and services related to waging war. This leads to the growth of the Industrial Military Complex, which is simply a business, which has found a customer with an ever increasing appetite for it's products and created a multi-trillion dollar industry, which in turn has resulted on a hundred years of more war, more inflation and more sufferring then ever before in the history of man kind.
This is a theory, that the military industrial business has become the most powerful force in the world, outside of oil companies, and we are all pawns for them to play with, helpless. Our governments don't ask us for permission to wage war anymore. They don't tax us with war taxes, they tax us by printing currency and devaluing the value of our labor, but devaluing our currency we are paid for our labor with...
Oczums Razor
Oczums Razor is a Philosophical Concept, which has been shown in multiple fields of science to be true; In nature, the simplest answer to a question is the correct answer.
In economics, the simplest answer to the question of why currencies worldwide suffer from inflation once they become untethered to things of value and scarcity like silver, gold. Once our governments can print as much currency as they need to fight wars, you get more wars. Once you start printing money freely, you experience more inflation and the devaluation of the currency.
The simplest answer is the correct one.
The complex answers which require you to follow twisted lines of logic and suspend your sense of disbelief, are most often the wrong answer.
The proof is in the pudding; look at what reality is.
In my lifetime, homes have gone from $5000.00 dollars to 500,000.00 dollars, and the cost of food and other commodities has increased along a similar trajectory.
Thats the proof in the pudddng, the reality of the situation.
print money, fuel inflation, devalue currency.
The added rub
The added rub, is that not all currencies experience inflation and currency devaluation at the same rate, so some countries experience hyperinflation of 5-10 percent per week, while others experience it at 5% per year.
but if we live long enough, and we pay attention, we all come to the realization that our money is being devalued by inflation, without our permission, by our governments, and we don't have a global consensus of the cause and treatment for this huge problem.
Then we invested or discovered Bitcoin
Some of us are now aware of a way to stop saving money in the form of currency, and instead save it in the form of cryptocurrencies. And we are doing this for two reasons.
One, we want to save the value of our labor in the form of an money, asset or commodity which has historically increased in value over time, instead of a countries fiat currency, which has a history of decreasing in value over time.
Oczums Razor again
It's really simple; accumulate fiat currency, which decreases in value over time, or accumulate Bitcoin, which has a history of increasing in value over time.
Which should you choose? is this really a trick question? Buy something worth more in a month, or buy something which is worth less.
Assets
There are other assets which increase in value, gold, silver, real estate, art, but they are not as liquid as Bitcoin, and they are not as portable as Bitcoin, and they don't provide a way for you to leave the current fiat based system, to protect the value of your labor, your savings for your retirement or older years when you can't work.
The choice is yours, and when you follow Oczums Razor, the simplest answer to the problem of devaluation of currency, is to stop save currency. Instead save that which increases in value, Bitcoin.
It's a simple answer to a complex question.
How do I as an individual deal with the loss of buying power of my countries currency?
I save the value of my labor in the form of asset which increases in value, to plan for the future and preserve the buying power of my labor.
