Inflation and Fiat Currency - The US government can print an infinite amount of dollars, leading to inflation [1][2][8] - Unlike fiat currencies, Bitcoin has a finite supply of 21 million [3] - Inflation primarily comes from an increase in the money supply that outpaces economic output [6][7] - The US M2 money supply has seen a massive increase since the 1960s [14] - Increased money supply can give the illusion of investment gains in assets like the S&P 500 [15] Bitcoin as a Deflationary Alternative - Bitcoin is presented as a deflationary alternative to inflationary fiat currencies [6][16] - As of August 2025, one Bitcoin is worth approximately $118,000, but it is divisible into 100 million satoshis [2] - In 2016, a typical house cost $288,400 and required 664 Bitcoin, while in 2025, a house cost $419,000 and required only 4 Bitcoin [16][17] - Holding Bitcoin for a minimum of four years has historically resulted in profit [21][22] Bitcoin's Four-Year Cycle and Investing Strategy - Bitcoin experiences a four-year cycle influenced by the Bitcoin halving, which reduces the amount of Bitcoin mined per day [23][24][26] - The halving events historically lead to price increases in the following year [24][25][26] - Dollar-cost averaging (DCA) is recommended as a long-term investment strategy for Bitcoin [27][28]
Why You're Falling Behind Financially — Bitcoin Helps. Asset Beginner Guide
Digital Asset News·2025-08-09 23:23