Replying to Avatar 10Luno

Your 12_word or 24_word seed is all you, and you alone, need to know. That is the meat and potatoes of it all. The rest is salad.
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10Luno 2y ago

The 'rule of 70' is the only rule that is needed to understand 'why Bitcoin?':

Whatever the average inflation over many years, 70 divided by that will give you how many years your purchasing power will halve; so the central bank 2% inflation target gives 70/2 = 35 years, for $100 in 35 years to buy $50 of what you can buy today.

So 7% inflation over 10 years (70 รท 7) will halve your purchasing power.

70% inflation over 1 year (70/70) will halve your purchasing power.

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10Luno 2y ago

You might say "35 years is a long time so why care? i'm not going to hold the same dollar/pound/euro/yen/yuan/etc for 35 years!"

Well, there is your #pension and the part that is held for 35years will be half as powerful when you need it most (at 2% average inflation over the period (35 yrs)).

Also, if you work your way up the career ladder and **double** your #salary in 35 years, you'd have the *same* purchasing power as you started with!

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10Luno 2y ago

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10Luno 2y ago

If a person starts work at 20yrs old, averaging 2% inflation across 35yrs, at age 55 they'd need to have *doubled* their income just to have the *same* as when they were 20 and what they made at 20 would buy them half what it could then, at 55.

Then at age 90 (another 35 yrs with avg 2% inflation across the period) their purchasing power *halves again* so their #pension needs to be *double* their salary at 55 to maintain their same standard of living they had at 55.

That is 'why Bitcoin'. And why central banks aim for 2% but *won't* say why.

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