Elon poking fun at himself after his $44B Twitter purchase.
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation — and avoid deflation — in order to keep the economy running smoothly.
As a general definition, when inflation occurs, every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money – in other words, the real value of money in terms of the goods and services it can buy, decreases.
Bitcoin is fast becoming an attractive option for Australians to include in their superannuation portfolio. With a maximum supply of 21 million coins, this scarcity can protect against inflation since, unlike fiat currencies, new bitcoins can’t be arbitrarily created by a central bank. This aspect is attractive during periods of high inflation when the value of fiat currencies can decrease rapidly.