"When the term inflation was used for the first time it referred to an increase of paper currency..."
SOURCE?
The whole article is basically about this claim. You don't want to like... I dont know... talk more about historical usage of this term?
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The historical usage of the term inflation is, I think, related to the Quantity theory of money.
Of course, today when the media and government is talking about inflation they are really just referring to "price inflation".
That being said the meaning of a word can change over time, or it can have different meaning between two different people based on their bias, or even just their perception of the word.
But your point is taken.
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There's a great Twitter thread by the author of the article. The Tweet that kicked off the Twitter thread is:
There's been a lot of chatter lately that Bitcoin has failed as an inflation hedge.
But what if I told you Bitcoin has acted perfectly as an inflation hedge?
Where the confusion lies is how people define inflation. Allow me to explain with a summary of my latest article👇🧵
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It's such a beautiful master piece n it just keeps getting harder it's just truth but with it comes so much beautiful chaos as it unravels🤡 🌎
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Inflation is solely the dilution of the money supply, the creation of more money. Consumer price increases are either caused by supply factors that no “inflation hedge” can or should protect investors from, or they are a lagging indicator of money printing.
Measuring monetary dilution via increases in the prices of goods is a fool’s errand.
The first is that while Bitcoin is directionally similar to most other assets when the money supply is expanded or contracted, it outperforms all other major assets in environments of monetary expansion.
Bitcoin is the purest inflation hedge because it is just money. Yes, tech stocks go up as liquidity floods the system. Yes, houses go up as interest rates drop. But stocks have idiosyncratic risks like debt loads, bad product decisions, competition, risks of obsolescence, and other real-world challenges. The same is true for real estate which suffers sufficient maintenance costs, jurisdictional risks, and illiquidity.
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