Record inflation in the US has once again shown that one cannot rely on currencies with unlimited emission and centralized management, such as modern government (fiat) money. For a long time, the US dollar was considered a fairly stable currency, and many chose it specifically as a means of accumulating wealth. Now, all dollar savings are merely awaiting devaluation. The reason for this is the inadequate economic decisions of the US government during the coronavirus pandemic; it decided to combat the arising difficulties by increasing the money supply. And no government in the world can guarantee that it will not make decisions leading to the devaluation of money and the impoverishment of people. Rather, the opposite should be expected—inflation is beneficial to governments, enriching those whose hands the new money supply reaches first (for example, the government itself and state banks), since they can spend these funds at pre-inflation prices. Thus, there is no such fiat currency in which your funds would be safe.
Cryptocurrencies demonstrate a different picture—of course, not all of them, but certainly those that are truly decentralized and crypto-resistant. The emission of such currencies is limited by the mathematics of large numbers, and centralized management is absent—any changes in the network’s operation (and even the implementation of updates by developers) are possible only with the direct consent of the holders of the majority of the computing power involved in it. Together with the absence of any restrictions on the exchange of funds (funds can be sent to any person in a matter of minutes, even one located in a distant country on the other side of the Earth), this makes cryptocurrencies a valuable asset in the eyes of an increasing number of people—the well-known Bitcoin, for instance, recently broke another record in its value.
Sooner or later, the governments of all states whose currencies are considered guarantors of savings stability will, mistakenly or even intentionally, make decisions leading to an uncontrolled increase in the money supply, meaning the devaluation of money and the impoverishment of people. And each time, cryptocurrencies whose emission remains at the initially set level will only become more popular as a means of accumulating wealth, or even as a means of exchange. The decline of fiat money is inevitable when such a good alternative exists!
