Welcome to Part 2, where we dive into life under a fixed currency.

Imagine a world where everyone uses a currency with a set supply, meaning no inflation. Let’s focus on that concept alone. If you’re skeptical about the feasibility, don’t worry; I’ll cover those doubts in a future post. Feel free to email me at James@BitcoinForLaymen.com with any questions, concerns, or counterpoints. I’ll be happy to explore them with you.

So, what does life look like with a capped currency?

In a system where currency can’t be devalued, inflated, or manipulated, things would operate differently. People could earn this stable currency by contributing value through work or production, much like today, but with one key difference: any money you make would hold its value over time. Prices wouldn’t creep up year after year, and this changes everything.

Let’s take it step-by-step.

Money you earn would bring stability, allowing you to predict future costs. Imagine pricing out your favorite meals and rent, then calculating exactly how much you’d need to retire or achieve financial independence.

Take a moment to consider your own goals. What do you really want out of life?

Personally, I’d love to just relax, drink coffee, and read books, without worrying about my job or the future. A fixed currency would make those goals more achievable by giving me a way to plan with confidence.

Let’s play this out, using a fixed currency symbol (#):

– Morning coffee: 1#
– Lunch (eggs and cheese): 4#
– Dinner (fish and veggies): 12#
– Rent per day: 8#

So, my daily expenses would total 25#. All I’d need to do is make more than 25# each day and save the rest, knowing that saved currency would retain its buying power. Whether for retirement, a long vacation, or a buffer period to find a new job, this stable system would make planning simpler.

Now, let’s take it further.

With a fixed currency, not only would prices remain stable, but you’d also likely see gains over time.

Here’s why: technology keeps making things cheaper, faster, and better. In a fixed currency, those savings are passed on to you. Here’s how this works:

Imagine two farmers. One grows apples by hand, producing 100 apples daily. The other uses a device that lets him grow and harvest 10,000 apples a day. Because this technology increases supply, competition would drive the price of apples down to reflect actual production costs.

For you as a consumer, this means apples get cheaper as we improve our production methods.

So, my daily 25# budget might drop to 20#, then to 15#, as technology lowers costs. This way, the benefits of tech advancements spread across society. Even the apple picker, saving in a stable currency, could eventually retire as their savings gain more buying power.

Today, people keep accumulating money because it loses value over time. It’s like trying to fill a bucket with a hole in the bottom. We’re constantly trying to fix the leakage by getting more buckets, but in reality, we should be plugging the hole. A fixed currency does exactly that, making every unit you save worth holding onto.