To answer that question you need to ask: “How much money is being added to the currency?”. This is a simple question, however it has proved very hard for me to answer because there is no official published data. Getting the historic Fiat currency (dollars, pounds …) figures for monetary expansion is extremely difficult. You can see the data sources that I used here.
The graphics below show the amount of additional money that was put into the economy in 10 year time periods from 1969. New generation currencies (cryptocurrencies) are the only currencies which tell you how much is going to be printed and let you verify if that really is true.
The dishonest policy of central banks is well established i.e. a central bank will never publicly reveal when it is carrying out money creation and actively seeks to hide the currency creation as knowledge of it could spark financial flight. Mainstream media maintaining an un-knowledgable public through shrouding the simple money creation act using complex graphics and technical jargon (‘QE3’, ‘Quantitive Easing’, ‘Credit Expansion’ etc.etc.). Because there are no independent audits of fiat currencies it is impossible to know the dilution effect that users of a currency will experience due to money creation. All workers are impoverished through the expansion of the money supply. General population ignorance that money supply manipulation is occurring means that unaccountable governments and banks continue the practice. There are never open public audits of where the increased currency is being spent. There is also very little public discussion.
Crypto currencies present a more efficient banking structure and most importantly an un-manipulatable monetary policy. It is often said “A Bitcoin will always be worth a Bitcoin”, what that means is that the dilution of worth through new money creation is not significant. There are many different cryptocurrencies and it is an area that is developing rapidly. Here the monetary expansion algorithm used by the leading cryptocurrency - Bitcoin has been plotted graphically. As can be seen, of all the major currencies, the ratio of value preservation is unrivalled for it’s low percentage of expansion and for the future predictability of dilution.
There are several significant technological trends:
- Widespread use of always carried internet devices (smart phones) means that access to cryptocurrency becomes as or more useful than national currencies.
- Easy, fast and cheap international travel (airlines) means that is a huge demand for quick and cheap currency exchange.
There are several significant employment trends:
- Fewer employment opportunities.
- Reduction in salaries and benefits (relative to living costs, e.g. housing, fuel, food etcetera).
These place pressure on workers to seek the most efficient location for their savings, since most people are experiencing a squeeze upon their ability to pay for day to day costs.