The Illusion of Inflation: Why Everything Seems to Rise When Money Devalues?
Imagine: the dollar (or real) loses value with rampant inflation. What happens? Prices of stocks, real estate, gold, and even Bitcoin "rise" on paper.
But it's an illusion! Ray Dalio explains: "When you devalue the currency, it makes it seem like everything is going up."
In reality: Fiat Devaluation: Central banks print more money (M2 expansion in the US increased +20% post-pandemic).
This dilutes purchasing power. Assets like Hedge: Gold and BTC don't "rise for no reason" – they maintain real value while the dollar melts away. Ex: BTC from $30k in 2023 to $100k+ in 2026?
Part is demand, but much is the USD weakening. Practical Example: If a house was worth $100k in 2000 and today $500k, it seems like a gain. But adjusted for inflation?
Real value may have fallen!
Lesson: Measure wealth in real assets, not in paper currency.
Diversify: crypto, gold, real estate. What do you think? Have you felt this firsthand? Comment! ₿
