Governments decided to "ditch" the Gold Standard in favor of Fiat, just so they can manipulate the economy to their own will. You can't "print" something as scarce as Bitcoin or Gold. Inflation is sometimes more of a feature than a bug. Without it, the economy can keep rolling like it's supposed to. You can see why people often hoard Bitcoin more than they use it. Deflation encourages people to hold, as they expect higher prices in the long run. The inverse happens when there's inflation.
Both Bitcoin and Fiat have their respective advantages/disadvantages. Depending on your needs, will be the form of money to use. I'd balance between the two for complete peace of mind. Hopefully, Bitcoin lasts for generations.
Both Bitcoin and Fiat have their respective advantages/disadvantages. Depending on your needs, will be the form of money to use. I'd balance between the two for complete peace of mind. Hopefully, Bitcoin lasts for generations.
Without inflation, the economy could still function but it would be a stagnant economy with slow growth. Because at that time, people tended to hoard rather than spend. When spending decrease, both supply and demand will decrease, leading to job losses, slower production...The economy will weaken.
Furthermore, the use of a currency with a fixed and decentralized supply would significantly increase inequality between countries. Countries that hold more bitcoin will become wealthier, while those that hold less will become poorer and have no opportunity for development. Besides that, this would make regulating and stabilizing the economy extremely difficult if a crisis occurs due to war, pandemic or natural disaster. The economy will collapse even faster if the government fail to intervene.
Clearly, both have advantage and disadvantages, and we need both.