How does monetary value change over time? From something worth $$$ in the early years to $$$$$ in today’s time.
In: Economics
There are basically 3 factors.
First, the intrinsinc value could have increased. That would be the case for stocks in a company that grew and became bigger and more profitable.
Second, the extrinsinc value could have increased. This value is the “unreasonable” value, based on scarcity, feeling, that kind of thing.
Third, inflation. If both intrinsec and extrinsec values stayed the same, the value of the money itself could have been lost. This happens every time more money is created when the underlying value does not change or goes lower, which is what every country in the world has been doing a lot since COVID (and was already doing prior, but to a lesser extent)
This is why cryptocurrencies are seen as having their value increasing: they dont really, but compared to regular currencies, called fiat, they have an interesting property: no one has control, so no one can decide to print a bunch of money whenever they want.
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