2025-12-26 10:21:28

Many people are unaware of a reality: since the collapse of the Bretton Woods system in 1971, the world has entered a new era.

Looking at the data makes it clear. Among 152 countries worldwide, not a single one has a long-term average inflation rate below 2%. Even Switzerland, known for its stability, has an average level of 2.2%.

What does this mean? It means your wallet is constantly shrinking. Even if you do nothing and keep your cash, your purchasing power is being eroded each year. This is not an isolated phenomenon but the fate of the entire fiat currency system.

From another perspective, fiat currency has actually been in an invisible bear market all along. However, this devaluation is masked by various price increases in daily life. You may not realize that you are gradually becoming poorer.

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DefiSecurityGuard

· 9h ago

ngl this is basically why i'm obsessed with holding non-custodial assets. fiat's literally a slow rug on your purchasing power, no audit report needed to see that. DYOR on your actual wealth preservation strategy fr

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DefiPlaybook

· 9h ago

According to data, the fact that all 152 countries have inflation rates >2% is indeed shocking. But the question is, is the depreciation of fiat currency accelerating or is it exaggerated by public opinion? It depends on the specific year-by-year breakdown. I agree with the bearish view on fiat currency, but the true hedging methods are not just cryptocurrencies; it also depends on how you balance your risk appetite and liquidity needs. In reality, Switzerland's 2.2% inflation rate is not unreasonable; the key is to look at the trend of the purchasing power curve's slope change, not just the absolute value. The data needs to be examined more deeply. That point in 1971 was indeed a turning point, but today the real issue is whether the central bank's inflation target mechanism itself has failed, which is more worth discussing. To put it simply, cash lying around is being cut, but you either allocate assets or hold cash; you have to bear some risk. The logic that there is no free lunch has always been valid.

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