Part 4/14:
The discussion delved into how inflation is measured and manipulated. The commonly cited Consumer Price Index (CPI) tends to understate real inflation because it excludes volatile staples like food and energy or adjusts basket weights. Inflation, in reality, can be better understood through the lens of money supply growth, particularly the M2 metric, which has expanded at a compound rate of 10-15% annually over the past decade.
Bitcoin, with its fixed supply and deflationary properties, stands in stark contrast to fiat currencies experiencing hyperinflation. The speakers pointed out that Bitcoin’s inflation rate against the dollar has been roughly 100% annually since 2015, illustrating its role as an anti-inflationary asset, akin to an insurance policy against monetary debasement.