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A visual comparison demonstrated the historical value of currency over time, illustrating the diminishing purchasing power of the dollar compared to Bitcoin. The stark reality of 1970s purchasing ability versus today's dwindling return on cash is striking. This comparison highlights a fundamental truth: Bitcoin may serve as a genuine store of value amid the inflationary pressures of fiat currency.
Supply and Demand Dynamics
With a foundational understanding of basic economics, the investor came to appreciate the supply and demand principles driving Bitcoin's value. The limited supply implies that as demand increases—whether due to more widespread acceptance or global economic shifts—the value of Bitcoin could potentially rise.