As we know resources are limited whether it comes to Nations, companies, or individuals.
We as human beings can produce, consume kind of fixed yet understandable quantity to any type of goods whether food, shelter, electronics, or anything. But we still are affected by greed, ego and so on its very important to understand these aspects to evaluate big losses in any face of life.
I came across this article saying that Bitcoin gained 11000% in last 10 years, which is tremendous for someone who is into investing and want to get rich. But if you don’t mind I will try to break it down and bit in order to gain 11000% in 10 years , the underlying has to grow 1100% each year basic math , the problem with that is any productive asset literally any productive asset which gives us back something cannot grow this fast , as productivity is linked to output which is linked to resources which is linked to time and effort, which is not present in that case.
I am not against Bitcoin or any sort of that stuff, but it doesn’t make sense to me in a very simple way.
Let’s come down to another point, I was going through an article in the morning, the headline says Inflation is out of control and in no time, we can see recession and worst time.
We all know money comes from labour (in form of wages) or Rent(Rent) or Profit ( if you own a business) , these all three produces something of a sort, if you give money to people who doesn’t have any of these without tying one of these thing to their future consumption , it will cause nations whole sort of problems.