Did Gold hit a new all time high?
No, the money lost its value drastically!
Let's take a look closer.
The Post-1971 Economic Shifts:
On August 15th 1971 Richard Nixon abandoned the converbility of the US-Dollar in gold. That lead to an increase of Federal debt from $398 billion to over $36 trillion, an increase of more than 9,000% in approx 50 years. This unprecedented growth in national debt was only possible under a fiat currency system without the discipline imposed by gold backing.
The dollar lost over 87% of its purchasing power since 1971, with some gold price analysis suggesting the decline could be as high as 98% when accounting for changes in calculation methodologies for inflation.
Housing costs have skyrocketed relative to incomes. Median home prices rose more than 1,600% while median household income increased only 475%, making homeownership increasingly unattainable.
The top 1% captured most economic gains as the middle class hollowed out, leading to wealth concentration levels not seen since the 1920s. This bifurcation of economic fortunes accelerated particularly after financial deregulation in the 1980s and 1990s.
Why #Bitcoin is a hedge against inflation:
Bitcoin has a capped supply of 21 million.
The decentralized nature of Bitcoin means it is not directly influenced by government monetary policies.
As more people and companies adopt Bitcoin, its value increase, offsetting inflationary pressures.