đ Why the Federal Reserve quietly drained purchasing power â and why Bitcoin is challenging the system
Most people believe inflation is accidental.
It isnât.
Itâs a feature of the modern monetary system.
đŻ Core Idea
The U.S. monetary system, built around the Federal Reserve, runs on elastic money.
While it solved short-term liquidity crises, it systematically eroded purchasing power and concentrated wealth at the top.
Bitcoin proposes a radically different alternative.
đ°ïž A century of erosion
đ” Since 1913, the U.S. dollar has lost ~97% of its purchasing power
đ Money supply and the Fedâs balance sheet expanded at historic, compounding rates
đ Savings lost value faster than wages could keep up
đ”ïž The hidden origins
đ In 1910, elite bankers and policymakers met privately on Jekyll Island
đ Central banking was sold as protection from Wall Street
đŠ In practice, it centralized monetary power closer to it
âïž The elastic money dilemma
đŸ Flexible money was justified for seasonal economic needs
đšïž Temporary expansion became permanent money creation
đ The gold constraint was eventually abandoned
đ Scarcity was removed â but discipline wasnât replaced
đ The unequal impact (Cantillon Effect)
đïž Banks, governments, and asset holders receive new money first
đšâđ©âđ§ Workers and savers receive it last
đ Prices rise before wages adjust
âĄïž This is the silent wealth transfer no one teaches in school.
đ Bitcoinâs alternative
đ Fixed supply â no committees, no bailouts
âïž Infinitely divisible (satoshis)
⥠Fast, global, permissionless settlement
đ Accessible without dilution or favoritism
Bitcoin doesnât promise stability.
It promises rules.
âł Perspective check
đŠ Federal Reserve: 112 years old
đ Bitcoin: ~17 years old
đ Bitcoin reached multi-trillion-dollar relevance in ~15% of the time, despite constant resistance.
đ§ Bottom line
đ The Federal Reserve represents discretionary money, framed as stability
âïž Bitcoin represents rule-based money, enforced by math
đč Gold constraint abandoned â unlimited fiat expansion
đč Bitcoin â digital scarcity without centralized control
đź The coming decades wonât be about regulation.
Theyâll be about which money survives open competition.
