Official episode / Crypto News Today
Daily Crypto Deep Dive: Currency Debasement – Why Your Money Loses Value | Part 3
About this episode
Why does your money seem to buy less and less over time — and what does Bitcoin have to do with it?
In Part 3 of our Crypto News Today deep-dive series, we tackle currency debasement and one of the biggest arguments behind Bitcoin.
We break down where claims that the U.S. dollar loses around 7% of its value each year actually come from, why money-supply growth is not the same thing as CPI inflation , and why simply adding the two numbers together gives you the wrong answer.
We also look at where newly created money and credit can flow, why property, stocks and other scarce assets can rise much faster than everyday consumer prices, and why holding cash carries a form of risk that is almost invisible: loss of purchasing power.
What currency debasement actually means
Why money-supply growth and inflation are different
Where the famous “7%” argument comes from
Why governments continually expand debt and credit