A century ago, until just over two decades ago, most countries with an open market economy had the habit of reprinting paper money by valuing it in terms of commodity-based backing. From the Marshall plan and after the 70s of the 20th century, countries began to abandon the gold-based currency ballast and started to compute the face value of the currency through trade balances and binary-pair relationships. financial market.

The institution of the concept of inflation comes directly from the devaluation of the currency's face value due to the internal and external financial market, the circulation of consumer and capital goods, the offer of services and foreign exchange reserves.

So, for example, if there is an annual inflation of 10%, it means that, at the beginning of the year, a note of 10 will actually have its value, at the end of the year, as 9, despite having a 10 on the face. of the paper.

In this way, legally, in order not to have to print a paper with 9, in the next year, it is allowed, in fact, that salaries, that earnings - mainly salaried workers - are allowed to increase in their base references. With this, the note value of 10 will continue to be worth 10, at least until the end of the year, when there is new inflation.

That is, the triggers of mandatory wage increases are the way in which governments do not need to issue money every year to update their value.

Inflation also means the financial relationships of supply and demand, of generation and consumption, of stock on demand of everything from consumer goods to services, for greater or lesser, that can deteriorate financial value.

Stock dividends are still more than a reflection of companies' adjustment to their products (of course, there are other variables!).

But both inflation and the face value of the currency are closely linked to the government, its rulers and the way they run their economies. This means that, even if the theoretical laws of economics are valid: government non-interference, in practice, the government interferes in everything!

In fact, these questions that terrify the traditional financial market: cryptocurrencies do not depend on any of these!

Cryptocurrencies, as their values ​​are mathematically determined, do not depend on government actions.

Bitcoin is deflationary as it maintains control over the emission.

In addition, being decentralized, cryptocurrencies are, par excellence, immune to face devaluation, which means that, in due course, regulated, bitcoin could be a global currency that could act as an anti-inflation.

But why is this virtue of cryptocurrencies fighting?

Because many banks, many financial institutions, even companies and the government itself, gain from inflation. Inflation causes a spread between the money that enters and leaves the financial system and this spread remains with the institutions!

Governments raise or roll over their debts indexed by inflation, or secondary indexes that end up being based, post fixed for several years ahead. Then, inflation becomes a guarantee of the bonds issued.

Cryptocurrencies are much more transparent and much less unstable!

It remains to be seen whether, in the real market, cryptocurrencies resist government temptations!