For a long time, the world was on the gold standard. This meant that for every paper dollar in circulation, there was a specific amount of gold in a vault backing it.
The government couldn’t print more dollars unless they found more gold. This kept prices stable and inflation low.
So why did we stop?
In 1971, President Nixon ended the gold standard because the US government was running out of gold. They had spent too much on the Vietnam War and social programs. They needed a way to print more money to pay their bills without being restricted by a metal rock.
It was essentially a default on a promise.
Since that day, the dollar has lost over 96% of its purchasing power. Without the discipline of gold, governments have printed unlimited amounts of currency.
Bitcoin brings back that discipline. It is a “digital gold standard” that cannot be turned off by a politician.