Most people don’t know what central banks do, but they control the price of everything you buy.
In the US, it’s called the Federal Reserve. in Europe, the ECB. They are not regular banks where you have a checking account. They are the “bank for banks.”
Their main job is to manage the money supply. They have two big buttons:
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Print Money: Lower interest rates to encourage borrowing (makes economy run hot).
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Destroy Money: Raise interest rates to slow down borrowing (cools inflation).
The problem is that central banks are run by a small group of unelected officials. They meet in secret rooms and decide if your savings should yield 5% or 0%.
If they make a mistake—like printing too much money in 2020—everyone pays the price through inflation.
Bitcoin removes the need for central banks. Instead of a boardroom deciding the money supply, a fixed algorithm does it. It replaces human error with mathematical certainty.