The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings?
The only currencies that have never lost their value since 1400 years ago are the dinar and dirham. Apart from dinars and dirhams, their value will also be lost, including dollars. Because money made of paper does not have the same intrinsic value as currency.1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle.
This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams.
I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further.
