Expansionary monetary policy, which involves increasing the #money supply, results in a loss of purchasing power for the currency over time. In response, producers may choose to keep prices fixed but reduce costs by substituting higher quality inputs with lower quality ones. Unfortunately, this leads to a decline in output quality while profit margins remain constant. Ultimately, society and consumers suffer the consequences.

As a solution to this problem, #Bitcoin offers money that cannot be debased thanks to its fixed supply.