When it comes to explaining the concept of money to people, there is one aspect a lot of consumers tend to forget. Money is only of value to our society because it provides us with purchasing power, and fiat currencies are not capable of maintaining that level of usefulness. Bitcoin, while suffering from mild price swings on a regular basis, is the only currency that can provide an increase in purchasing power over time.
Fiat Currency’s Declining Purchasing Power
Figuring out how money works is not all that difficult, as the concept is entirely defined by how much one can do with the currency received. In the world of fiat currency, everything we buy or sell is priced at a certain value, and that amount needs to change hands if people want to purchase something in particular.
Some people may have noticed how they can purchase less and less with the same amount of money throughout the years. This is a direct result of the decline in purchasing power, which is very common when dealing with traditional