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Currency debasement, that's how. Here's an illustration of how to explain debasement to financial novices. Think of yourself holding a pitcher of lemonade. It has a certain ratio of the ingredients. You decide to sell it to the little kids running around the nearby park. First sale is made and you feel great making money. Now remember you only had enough lemons to make this single pitcher. Word gets around and all the kids show up with their quarters.
There are more kids than you have lemonade, but there is a nice water fountain next to your stand. Ok, just add some water to make up for the volume sold to the first kid. Each time you sell a cup you add more water to the pitcher. You keep doing that for a while as none of the kids notice you refilling the pitcher. You and I both know that eventually the water dilutes the supply of lemon ingredient that was originally added to the mixture.
The water is the new money being "printed" each day by our Fed. The original ratio of lemonade ingredients are the original value of the dollars in our dollar ecosystem. The bitcoin is the better lemonade that cannot be diluted by added ingredients of zero flavor.
Nice analogy. Thanks for sharing!
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