⏰⌚️⏳⏳🕰️🕛 The Time Machine of Fiat Currency

My father used to work for 100 USD a day 20 years ago. 8 hours, 100 USD.

He gave me 100 USD 20 years ago.

He had a friend, John, and John also had 100 Dollars. John gave his daughter a golden coin 20 Years ago. Lets assume that that golden coin was 100 dollars 20 years ago.

Enter the time machine. Imagine both men had a time machine, travelling 20 years in the future. Imagine my father putting the 100 USD in his time machine and it arriving today.

I pick up the 100 USD.

How much value did I get? Is this the same 100 USD? Yes.

But can I BUY the same amount if stuff with it?

No!

Why not?

Because they printed Trillions more of it. That’s why it’s purchasing power decreased.

The purchasing “power” or energy leaked. 

My father worked 8 hours to get that 100 USD but his time didn’t make it.

With the rule of 72 you can calculate that if they created 7% more dollars every year, that in 72/7% = 10 years, half of the purchasing power leaked.

The US dollar leaked purchasing power.

It leaked half of my father’s 8 hours.

So after 10 years in the time machine only 50 dollars of purchasing power arrived or 4 hours of my father.

After another 10 years again half of my father’s time leaked. Or 25 dollars our of the 100 dollars of my father.

After 20 years I his son opened the Time machine of my father and picked up the 100 USD .

I only got 25 USD in purchasing power or 2 hours of my father’s work.

You see: by printing fiat currency at the rate of 7% per year… they stole 6 hours of my father or 75 USD.

Now imagine the friend of my father who converted his 8 hours of work into a golden coin and gave it to his daughter.

During 20 years the amount if gold has only increased with 1.5% per year.

72/1,5 = 48.

It will take 48 years until the golden coin’s purchasing power decreases by half.

So after 20 years there is still some time in that time machine for that daughter.

The daughter can pick up the golden coin and spend maybe 7 hours of her father.

Gold doesn’t leak time. Or energy.

Why?

Because they cannot print it like they want.

It costs energy to “print gold”. It costs energy to produce gold. And they cannot produce it at a rate of say 7% per year like they have been doing with US dollars (= fiat currency).

Now I give that 100 dollar of my father, worth 25 dollars to YOU.

You give it to your son or daughter in 20 years. You also have a time machine. You also can travel to the time machine. That traveling is called “Saving”.

Yes, when you save that is exactly what you are doing. Saving is using a time machine.

How much of that 25 USD ( remember the bill still says 100 USD, but we know that it’s purchasing power is really 25 USD and it’s decrease of value is USD 75), how much will your sun reveive in 20 years? How much of the 2 hours of my father’s time?

6.25 dollars or 50 cents!!! Remember every 10 years the value is cut by half.

25> 12.5 in 10 years (or 2 hours > 1 hour in 10 years)

And 12.5 > 6.25 in another 20 years (or 1 hour >0.5 dollar in 10 years)

Enter Bitcoin

If in 2014  I had jumped in that time machine and picked up that 100 USD, which was maybe 50 usd in purchasing power amd bought Bitcoins with it.

How much purchasing power would I have had now? How much hours of my father (4 hours left when I opened that time machine) would I have “created”?

You see: bitcoin is a FIXED supply.

They cannot create it at 7% per year!

They create it at a decreasing pace.

First we could create it at 50 per 10 min. After 4 years at 25 per 10 min. Then at 12.5 per 10 min. Then at 6.25 per 10 min.

It is harder to create Bitcoin every 4 years!

So unlike the US dollar it is harder to steal your energy every 4 years.

It gets 50% HARDER to steal your energy every 4 years.

Or technically your purchasing power DOUBLES every 4 years.

Or your time DOUBLES every 4 years.

So if I picked my father’s 100 USD after 10 years and it was worth 50 USD or 4 hours, and changed it into Bitcoin,

I would have STOPPED the decrease of his time.

I would have gotten 8 hours back after 10 years. So now I got 8 hours of my father.

And if I give it to my son he would have 16 hours in 4 years. 32 hours in 8 years.

Because Bitcoin becomes scarcer while they print more US dollars.

I’m not speculating about the doubling of Bitcoin’s value after each 4 years.

Do your own research. Don’t trust me.

But Bitcoin has this feature of being capped at 21 million.

So it can stop the leakage if your time.

It is scarcer than gold.

It is programmed like that.

Bitcoin can hold your value accross time.