Every second you spend reading this article, your savings become a little lighter — not physically, of course, but in the only sense that matters: in their ability to exchange for real goods. Central banks call this "price stability," economists call it "moderate inflation," and an honest person would call it what it is: legalized expropriation on an installment plan.
The Sacred Cow of Monetary Policy
Where did this magical number — two percent — even come from? Not from deep scientific analysis, not from centuries of economic theory wisdom, and certainly not from concern for ordinary citizens' well-being. It appeared, as often happens in the history of monetary policy, out of thin air — specifically, from the New Zealand parliament in 1989, when their central bank first established this target. Since then, like a virus, this idea has spread worldwide, infecting the Fed, the ECB, the Bank of England, and dozens of other regulators.
Consider the absurdity of the situation: for years we've been told that the central bank's main task is price stability. But what's stable about a system programmed for constant currency devaluation? It's like hiring a security guard who removes one item from your house every night and calling it "stable security." A trick worthy of the best illusionists: calling planned destruction stability, and the robbery victim a policy beneficiary.
"But a little inflation stimulates the economy!" defenders of the system will object. Yes, it stimulates — it stimulates you to spend money right now because tomorrow it will be worth less. This isn't economic healing; it's a hamster wheel you can't escape. You run faster not because you've grown stronger, but because the floor beneath you is moving backward.
The Mathematics of Slow-Motion Robbery
Let's play some simple arithmetic. At 2% annual inflation, your savings lose half their purchasing power in 35 years. Doesn't sound so scary? Then let's translate to human terms: if you set aside money for retirement at 25, by 60 it will buy half as much. And that's the ideal scenario, where inflation actually stays at 2%. When was the last time you saw such an idyll?
Reality is far harsher. Total global government debt has exceeded $100 trillion — a number so astronomical that the human brain cannot comprehend it. And the only way to service this debt without outright default is to devalue the currency in which it's denominated. Inflation is a tax that doesn't need to pass through parliament, a tax on the very existence of money in your pocket.
Now imagine: every second, 4,755 banknotes are printed worldwide. Four thousand seven hundred fifty-five new pieces of paper diluting the value of existing ones. This isn't economics; it's alchemy in reverse — turning gold into straw. And all of it is served up under the sauce of "monetary stimulus" and "economic growth support."
Who Benefits from "Stable" Inflation
Watch the hands: inflation is wealth redistribution, and it always has beneficiaries. Who are they? First, debtors — and the planet's largest debtors, governments, get to repay debts with devalued money. Second, those who first access freshly printed money — banks, large corporations, structures close to the "feeding trough." By the time that money reaches your pocket as wages, it will have already lost some of its value.
This mechanism is called the Cantillon Effect, and it has worked flawlessly for several centuries. Those closer to the printing press get richer; those further away get poorer. Democracy of money? Don't make me laugh. It's oligarchy with macroeconomic justification.
And here's the irony: the very same institutions that create inflation offer you "protection" from it — in the form of investment products with fees, pension programs with restrictions, "reliable" government bonds with yields below inflation. Like an arsonist selling fire insurance and genuinely wondering why customers are unhappy.
The Historical Farce of Targeting
The history of money is a graveyard of promises. The gold standard guaranteed stability — until it became "inconvenient" for governments wanting to finance wars and social programs. The Bretton Woods system promised a gold peg through the dollar — until Nixon "temporarily" suspended convertibility in 1971. That temporary measure, by the way, has been in effect for over fifty years.
Now they're asking us to believe in inflation targeting — a scientifically grounded approach, they say. But science implies the possibility of falsifying a theory, while monetary policy resembles religion more: faith is mandatory, doubt is heresy. When a central bank misses its target by 5-10 percentage points (and we all remember 2022-2023), nobody loses their job, nobody bears responsibility. Just "temporary factors," "external shocks," "unforeseen circumstances."
Bitcoin cyclically drops 80% every four years, and critics call it unstable. The dollar has lost 97% of its purchasing power over a hundred years, and it's called a "safe haven." Find the logic.
The Psychology of Normalizing Losses
The most insidious aspect of two-percent inflation is its invisibility. The human brain evolved to recognize sudden threats: a tiger in the bushes, a cliff underfoot, a sudden noise. Slow, gradual impoverishment doesn't register as danger. We get used to it. We adapt. We start considering normal what our great-grandparents would have called robbery.
Remember how your parents told you about prices in their youth? "A loaf of bread cost pennies!" — and you smiled condescendingly at their nostalgia. But think about it: that's not nostalgia, it's documentation of a crime stretched over decades. And your children will smile the same way, hearing about 2025 prices.
Central banks have learned the main lesson: don't steal a lot at once, steal a little constantly. The frog in slowly heated water is the perfect metaphor for the modern saver. By the time it gets truly hot, there will be nowhere left to jump.
Alternatives Exist — And That Terrifies the System
The emergence of cryptocurrencies is not just a technological innovation; it's a philosophical challenge to the entire fiat money system. For the first time in history, people have a tool that allows them to escape monetary authorities' control. And the reaction of these authorities — from aggressive regulation to open hostility — speaks louder than any words about how serious a threat this is to their monopoly.
But Bitcoin, for all its merits, has a significant drawback: its emission is limited, but there's no deflation. The number of coins doesn't decrease over time. It's a hedge against inflation, but not its antithesis. A true alternative must go further — not just stop devaluation, but create a mechanism where the asset's value grows over time systematically, not just due to speculative demand.
DeflationCoin: When Mathematics Works for the Holder
This is precisely the problem that DeflationCoin solves — the first cryptocurrency with algorithmic reverse inflation. Unlike Bitcoin, which merely slows the rate of emission through halving, DeflationCoin uses a deflationary halving mechanism: coins not placed in staking after purchase are burned. The supply isn't just limited — it's constantly decreasing.
Smart Staking cultivates a culture of long-term investment: from 1 to 12 years, eliminating the speculative component. Gradual Unlocking makes mass panic selling impossible — the kind that crashes traditional crypto assets. During bear markets, when Bitcoin falls and drags the entire altcoin market with it, DeflationCoin demonstrates zero correlation thanks to buybacks that increase from 20% to 80%.
Around the coin, a diversified IT ecosystem with a $4 trillion TAM is being built: from educational gambling and CeDeFi exchange to decentralized social networks and proprietary blockchain. This isn't just a token — it's the currency of a digital state where the laws of economics are written in favor of the holder, not the issuer. In a world where fiat currencies are turning into "candy wrappers" at a rate of 4,755 banknotes per second, a deflationary asset isn't a luxury — it's a necessity.