The post Why Your Money Buys Less Every Year appeared on BitcoinEthereumNews.com. Not long ago, a $100 bill could cover dinner, a movie and drinks. Today, it might not even be enough for the meal alone — and in another decade, it’s likely to stretch even less. That’s not a fluke of bad luck but a feature of modern monetary systems: inflation is built in. In a new Cointelegraph video, we examine why money consistently loses value over time, and why governments actually want it that way. The story begins in 1944 with the Bretton Woods agreement, when the US dollar was tied to gold at $35 an ounce. That link ended in 1971 with the “Nixon Shock,” turning the dollar — and every major currency in the world — into pure fiat, backed only by government trust. Since then, purchasing power has been on a steady decline: A dollar in 1971 buys what takes more than seven dollars today. Of course, money printing isn’t the only driver. Energy shocks, supply chain disruptions and rising wages also push prices higher. And while central banks insist inflation at around 2% is “healthy,” the long-term effect is the devaluation of fiat currency. So what does this mean for savers? And is there an alternative to the fiat system? Some argue gold or Bitcoin (BTC) offer protection because they’re scarce in a way paper money isn’t. Others warn that without flexible money supply, economies would collapse under debt. The full Cointelegraph video dives deeper into this history, the risks of runaway inflation, and strategies people use to protect their wealth. Check out the full video on our YouTube channel. Magazine: Astrology could make you a better crypto trader: It has been foretold Source: https://cointelegraph.com/news/why-your-money-buys-less-every-year-video?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inboundThe post Why Your Money Buys Less Every Year appeared on BitcoinEthereumNews.com. Not long ago, a $100 bill could cover dinner, a movie and drinks. Today, it might not even be enough for the meal alone — and in another decade, it’s likely to stretch even less. That’s not a fluke of bad luck but a feature of modern monetary systems: inflation is built in. In a new Cointelegraph video, we examine why money consistently loses value over time, and why governments actually want it that way. The story begins in 1944 with the Bretton Woods agreement, when the US dollar was tied to gold at $35 an ounce. That link ended in 1971 with the “Nixon Shock,” turning the dollar — and every major currency in the world — into pure fiat, backed only by government trust. Since then, purchasing power has been on a steady decline: A dollar in 1971 buys what takes more than seven dollars today. Of course, money printing isn’t the only driver. Energy shocks, supply chain disruptions and rising wages also push prices higher. And while central banks insist inflation at around 2% is “healthy,” the long-term effect is the devaluation of fiat currency. So what does this mean for savers? And is there an alternative to the fiat system? Some argue gold or Bitcoin (BTC) offer protection because they’re scarce in a way paper money isn’t. Others warn that without flexible money supply, economies would collapse under debt. The full Cointelegraph video dives deeper into this history, the risks of runaway inflation, and strategies people use to protect their wealth. Check out the full video on our YouTube channel. Magazine: Astrology could make you a better crypto trader: It has been foretold Source: https://cointelegraph.com/news/why-your-money-buys-less-every-year-video?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound