⠀⠀⠀⠀⠀⠀⠀⠀⠀
It is no coincidence that there have been 30 different examples of hyperinflation 💸 since 1920, after WWI.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Even though at this point most countries were on a #gold #standard , governments were still able to print 🖨 lots of money to fund the war.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
This allowed governments to pay for #war 💢 without directly taxing citizens, but instead forcing them to pay through #inflation .
⠀⠀⠀⠀⠀⠀⠀⠀⠀
It should not be a surprise that following #WWI, as inflation wreaked havoc, we had the Great Depression 📉.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Typically the Great Depression, gets blamed on #evil #capitalism 🧟♂️, but it is actually the product of governments unnaturally altering the money supply 🖨, in this case to fund WWI.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
When money is not scarce enough 💰, it encourages people to borrow/spend more and leads to misallocation of resources and eventually capital waste 🌋.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Rising prices of goods 📈 will always follow an inflation of #money supply since there is always a limited number of actual resources, no matter how much money you print. Thus once resources get scarce, their price will start to quickly rise negating any “value” gained by printing the money 🖨.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
This leads to the misallocation of resources 🔀 as an #investment that once looked good, is no longer profitable as the cost of resources goes up.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Sadly, by this point it is too late as capital investments and projects have already begun. Businesses go bankrupt, leaving projects frozen ❄️, unfinished, and wasting all of the resources that went into them.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Many people lose their jobs 😢quickly as all of the mal-investment in the #economy drys up.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
In the worst cases, this type of economic turmoil resulted in some of the most evil the world has seen, the #Nazi party of #Germany 🇩🇪.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Without these drastic boom and bust business cycles 🎢, societies have shown to grow steadily, peacefully and prosperously. Unsurprisingly, sudden, drastic downturns in wealth brings out the evil in people.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Due to its resistance to hyperinflation and inability to increase supply to fund wars, Bitcoin 🥇could save millions of lives in the future 💭.
⠀⠀⠀⠀⠀⠀
#learn #money #business #motivation #education #finance #smart #weekend #cryptocurrency
#motivate #wealth #entrepreneur #educate #blockchain #invest
Hello, Is anyone interested in receiving 500 steem power delegated for 7 days, for an article about cryptocurrency projects, please check my latest post @greatvideos and let me know, or if you write an article every Monday and give it to me you can keep delegation for as long as you write articles. https://mycryptostake.com/ Is my new website.
Find me on MyCryptoStake Discord channel https://discord.gg/6xn7hFm
Hello @hunter5! This is a friendly reminder that you have 3000 Partiko Points unclaimed in your Partiko account!
Partiko is a fast and beautiful mobile app for Steem, and it’s the most popular Steem mobile app out there! Download Partiko using the link below and login using SteemConnect to claim your 3000 Partiko points! You can easily convert them into Steem token!
https://partiko.app/referral/partiko