Decline in purchasing power is NOT just a USD issue. ALL fiat-based economies have followed that rule throughout time immemorial. The topic title should be changed to  Re: Just a reminder: How shitty fiat could be Vs Bitcoin

It's called inflation and is a result of governments always wanting to see growth in their economies - guess what drives growth: the vicious circle of people wanting to earn more for the work they do or services they provide. That in turn means they have to charge customers more which in turn makes things more expensive so folks have to earn more to buy things. Rinse and repeat ad-nauseam.

I defy you to find one example of any economy that has had sustained deflation.

This is one of the reasons why a lot of people tend to just hold Bitcoin instead of some fiat currency, even other non us dollar currency. Especially if you are from a country where the fiat currency is losing its value, the best example of this was what happened during the COVID-19 pandemic, and after that pandemic, we saw a lot of volatility in most fiat currencies around the world especially if you compare it with Bitcoin.

As the economy Grows
Government prints more money trying to keep up with it
This brings about inflation and thus the depreciation of Fiat.
Inflation is preferred by the government because it encourages spending and they can tax more when money changes hands
Very lucrative
Not to mention it makes borrowing attractive and the economy is usually built on debt and loans.

So Government policy is always inflationary and Fiat would continuously fall as years goes by.
But they fall at different rate
Some fall faster than others.
 

The dollar is as shitty as it can get but people somehow still like it a lot. They just can’t have enough of it.  Maybe it is because the trade around the world still depends on the usd. Nearly every god damn business is keeping their books in usd. Bitcoin will never achieve that kind if worldwide adoption.

Maybe we should be happy with what we got instead of chasing the impossible dream… Bitcoin will never replace the dollar. It is physically impossible.

Yes bitcoin has far better purchasing power and it gets better and better unlike the dollar but that’s pretty much all about it. Some countries (like mine) don’t even acknowledge bitcoin as a currency. Here, you can’t use bitcoin as a currency because it is banned by the government. If you are going to buy a car, you can’t say I paid this man 1 btc for his car. This has zero meaning in the eyes of the government.

How can btc thrive in an environment like this?

Why just US dollar? All fiat based currencies are falling in value. The purchasing power is decreasing for all of them! It's not only about USD. That's the basic nature of fiat currencies. That's why people should never make bank deposit for some small percentage of return which depreciates overtime.

That's why people used to buy Gold to protect their capital in earlier times. Gold is still a favorite amongst many of us. Bitcoin is extraordinary here. It has always shown a super strong performance since inception. So it's always a good choice to invest in Bitcoin and Gold as well. It has proven itself as more than just a passing trend and should be considered as a serious investment alternative.

Any country that suffered deflation will try everything in order to grow their economy i.e. Japan. The price of real estate and car in Japan's rural areas is really cheap, no one want to live there, they also open for anyone who want to work in Japan.

Inflation is good to encourage people to spend their money and make the economy run, government don't like people who save their money instead of spend it. That's the government task to make their economy grow.

On the other hands, we as individual who want to get rich shouldn't hold fiat, instead we need to invest.

All things are risky and in investment, if anyone told you that an asset is zero risk and is a best investment asset, it's risky advice. Risk always there and comparing different assets, to say this one is better, is the best than others is very controversial and people will never agree with your comparison.

Because the best for me has to match many things I have, like available income, capital, social economic status, health status like age and how many years I have in rest of my life. It's easy to say what is best purely based on historic records and numbers but in practice of each person, there are more things to be included.

If I have only 2 years left to live, it's hard for me to bet in Bitcoin even I know it is good for investment but with only 2 years, what will I do if Bitcoin falls 80% within next two years. So with this condition, I will choose gold.

https://casebitcoin.com/charts#roi_chart

Dollar is even better. Research more about fiat of each country in the world and see how inflationary governments of the countries are manipulating it in the same of helping the economy. Fiat is the biggest scam on earth. People from many countries hold USD because of the highly devaluing local currency. USD is not different but better than many of them. If the price of bitcoin fall, best to buy and hold it and you will not regret that.

Despite all that shitty thing that OP said and that all are true,  USD still remains the world's chief reserve currency, hence adding stability and liquidity for international trade and economic security. Bitcoin's rise in value is stunning, yet it's equally noted for high volatility and speculative risks that may not be fitting for every investor. Diversification amongst assets, such as Bitcoin, with other stable assets including the USD, is done by many financial experts to balance growth potential with stability.

Bitcoin has shown promise in the way that it works as an inflation hedge, but it remains an emerging asset in respect of its utility and regulatory frameworks. Where Bitcoin hasn't quite equaled the unique value of the dollar yet is in its relative stability and broad acceptance in a global finance context, despite wider institutional adoption and new products such as ETFs. It's all about balance-while Bitcoin might be a formidable asset in any portfolio, relying wholly on it ignores some practical benefits of a currency such as the USD in the current world economy.

The ease of getting $100,000 Is higher than it was 1972 doesn't mean the variabilities are balanced.
The ease can not cover the rate of fall.

Bitcoin and dollar currently both satisfy different market
One is best as a store of value the latter as a medium of exchange.

Deflation might seem better to the people but it's a deficit to the economy
In the long run its going to collapse the economy and what's the benefit of having an higher worth of your money if there's no economy to spend it in.


Everything comes at a cost.