Imagine you have $10,000 in savings and invested most of it in various assets. Now imagine that the government prints an extra 10% worth of currency, and suddenly all prices increase by the same percentage. Since your wealth is mostly tied to assets instead of cash, their value should rise accordingly - good news! But if you live paycheck-to-paycheck or hold a more substantial amount of cash relative to your assets, this inflation acts as a tax on your wealth causing disadvantage over time compared to those whose wealth is optimally distributed across appreciating financia.lf instruments like Bitcoin

#inflation #wealthdistribution