inflation means the general price level rises, so each unit of money buys less. It is usually measured with a consumer price index (CPI).
The official view
Central banks aim for low, positive inflation. The Fed targets 2% over the longer run, the ECB 2% over the medium term, and Norges Bank consumer price inflation "close to 2 percent over time". Norges Bank argues some inflation helps wages adjust and leaves room to cut interest rates.
Why that is a problem for savers
- 2% a year halves purchasing power in about 35 years (own calculation).
- Targets are often missed. Inflation in many countries rose well above 2% in 2021–2023.
- New money reaches some people first (banks, governments, asset owners) before prices adjust; those who hold cash and wages adjust last.
- In extreme cases money collapses: hyperinflation in Hungary (1946), Germany (1923) and Zimbabwe (2008) wiped out savings.
Bitcoin's answer
Bitcoin does not try to fine-tune the economy. Its supply follows a fixed, public schedule that falls toward zero; no committee can decide to print more. Your share of the total supply cannot be diluted.
That does not make bitcoin's price stable. Measured in kroner or dollars it can drop sharply. The claim is narrower: the rules of the money do not change under you.
Takeaway
Inflation is a policy choice. Bitcoin offers money where that choice is removed.