The great theft of time and money.
What is Money?
- I and many others feel that money serves as a representation of the time and effort individuals exert to create value.
Essentially, when you earn a dollar, you're not just getting a piece of paper or a digital entry.
Instead, you're receiving a unit of currency that represents a portion of your life's work, your energy, and your dedication.
What does inflation do to money?
- When inflation occurs, the purchasing power of that dollar diminishes.
- This means that the same dollar, which represented a certain amount of your time and effort when you earned it, can now buy fewer goods and services.
- So inflation "robs you of your stored time and work."
Here's a breakdown of that means
Your Earned Dollar = Your Time and Work in a Stored Form: You spend your time and energy to produce something or provide a service.
When you are paid, the money you receive is a symbolic representation of that effort.
It is, in effect, your "stored time and work."
Inflation Robs You of Your Stored Time and Work: When inflation occurs, the general price level of goods and services rises. As a result, your stored time and work (represented by your money) can buy less than before. This effectively reduces the value of the effort you put in.
Analogy:
Imagine earning money by building houses.
If the cost of building materials increases dramatically due to inflation, the money you earned for building one house can now only afford to build a smaller house, or perhaps not even a full house.
In essence, the purchasing power of your earnings (your stored time and work) has been diminished.
This perspective highlights a key concern for Bitcoiners: the potential for currency debasement and its impact on the value of individual labor and energy.
We believes that sound money, like Bitcoin, can address this by providing a more reliable store of value, allowing individuals to retain the value of their earned time and work without being eroded by inflation.
Recap and drill down
- I think we all understand that inflation devalues your national currency.
- But what we don't all understand and connect the dots to is that inflation devalues your time and work.
How?
- Inflation effectively devalues your time and work because: Your labor and effort are exchanged for money: You spend your time and energy creating value, and in return, you receive money as a representation of that value.
- Inflation erodes the purchasing power of that money: When prices rise due to inflation, the same amount of money can buy fewer goods and services than before.
- Therefore, the value of your labor is diminished: Since your money represents your time and effort, if your money buys less, then the equivalent value of your time and effort has been reduced.
The final word...
- In essence, inflation is a "theft" of the stored value of your time and work, forcing you to spend more effort and time to acquire the same standard of living.
