Since the 2000s, while the M2 money supply has soared, the velocity of money has significantly decreased.

Imagine if this vast amount of money circulated its maximum potential velocity. The consequences would undoubtedly manifest in rampant inflation, as the immense liquidity would drive up prices across the board. This scenario highlights the precarious balance between the money supply and its circulation speed, underscoring the often overseen inflationary pressures lurking beneath the surface.

#Money #Bitcoin #Inflation