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Jake Woodhouse 1y ago

Quickly compared a investment from today to 2020

It was measured in aud$

“Oh, we’re kind of in line with back then”

I said to my wife

But then… boom. What about real inflation?

Oops

Just about the most important thing any investor can look at

In purchasing power it’s down

For sure

Regardless of what government metric tells you otherwise

Once again, I was tripped up by how counter intuitive inflation actually is

Prices going up does not mean value is increasing

It’s in fact the denominator falling

Most people have no idea…

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Turtlesallthewaydown⚡️ 1y ago

So true, in fact, this realisation lead me to write an article titled, “How Bitcoin taught me that I wasn’t smart and rich but instead, dumb and poor” 😂

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Leurico8 1y ago

What I've been doing lately is every time someone complain that cost o living is going up or that things are too expensive I disagree. I say that in fact everything is cheaper now. It take less time, less effort and we can make better stuff. I initially bring gold as an example and I say that whatever they are complaining about, when priced in gold is actually cheaper. When they ask me if I own gold I say "yeah, but not much. gold is shitty to own. I own bitcoin, I believe is way better ". It is interesting to see the reactions.