Dollars, Gold, and Bitcoin as Savings Technologies

The following article was originally published in November 2020 by fellow Bitcoiner Croesus_BTC.

All forms of money grow in total value as the global economy grows. What differs is how they do it.

The U.S. prints as many dollars as needed to achieve 2% inflation.

The only way to do this is to pull supply out to the right far enough that it deflates the purchasing power of all existing dollars by ~2%. (For your own good!)

Since 2010, this has meant an average supply increase of ~8% per year. Source: https://fred.stlouisfed.org/series/M2

Gold's supply is not actively managed. However, the free market efforts of gold mining adds ~2% to total supply every year.

Since the global GDP also increases by ~2% every year, this means the purchasing power of one unit of gold is unchanged.

This makes it a better store of value than dollars.

Source: https://macrotrends.net/countries...

Bitcoin takes a different approach. For the first time in history, there is a money whose total supply is fixed. In contrast to dollars and gold, there is only one direction by which Bitcoin can grow.

Which form of money is best for storing your savings in Year 0?

Which form of money is best for storing your savings in Year 0?