That’s certainly an argument that many bitcoin promoters make. We all know that the US Dollar is debased annually – by intent, the Federal Reserve strives to cut the value of the dollar by 2% per year. But sometimes, it’s reduced by an even larger amount – as we’ve seen in the past several years. We call this inflation, referring to increased prices, because it’s more politically expedient. If the Fed and politicians called it what it really is – dollar erosion – the public wouldn’t tolerate it like they do (and if you think they don’t tolerate it, consider all the money in zero or low interest rate bank accounts).
The Fed is able to reduce the value of the dollar by simply printing more of them – by increasing the supply of dollars, you make each one worth a bit less. Now, 2% might not sound like much, but over decades it is devastating. That postage stamp that cost you four cents in 1960 costs 49 cents today – a 12.5x increase.
Bitcoin was created to solve this problem. A total of 21 million bitcoins will be produced (19mm so far), and the inability for the creation of more means there cannot be debasement. So while the value of a dollar goes down over time, the price of a bitcoin is expected to go up over time. And so far, that’s what’s happened. Will that continue? That’s for you to decide, but I’m in the camp that believes it will.