Well 'scuse me, Mr Privileged. Countries which are not US do in fact exist, and are not using USD. Check some other CBCs YoY against USD, and tell me how much they lost on average.
So they have access to USDC. I love how people pull out the privilege card the second you suggest that a so-called currency that loses 70% of its value in a year (BTC) might not be that good for poor folks.
True privilege is being able to lose 70% of your net currency value in a single year without being on the street and advocating for it even after. For everyone else, there are better choices.
I suspect somewhere along the bull run you lost perspective.
USDC != USD. We know what happened to UST, the rest will follow. Poor folks are also buying homes, which will drop, in some places maybe 100% in the next year, but nobody doesn't seem to have a problem with that.
Obviously there's a world of difference between a Ponzi scheme like UST and USDC. However, that doesn't change my point - which is that a proper, tokenized dollar - or even USD CBDC would solve everything you're trying to solve but better. So let's start advocating for that. It's not privilege to call out that you have a bad solution and that better solutions exist.
I stand by that. The broad-based increase in costs is due to a supply crunch (war in Ukraine, lockdowns in China, disrupted supply chains) and a labor shortage. The cost of energy is up 42% year over year and of course that trickles down into all other categories. [1]
I think the pandemic relief was a contributor but not a major contributor. One that would have been irrelevant had Russia not invaded Ukraine.
Higher interest rates don't increase supply (6% APR doesn't get any new oil out of the ground) they destroy demand. By second order effects, they decrease the money supply and hence prices. But that's not exactly an ideal strategy as we'll soon see. The 2/10 curve has been inverted for a few weeks now.
This is a weak attempt at ad hominem.
After all, isn't oil up over 100% in BTC terms in the past year? Surely y'all didn't print a whole ton of BTC did you? Since you didn't how do you account for that spread? And the lack of evenness in cost increases - shouldn't monetary inflation have even, broad-based price increases? Why is energy up 10X more than other things? Used cars?
Let's look then at the Turkish Lira, which had a massive fall because of crazy monetary policy and other problems. It now stands at 0.057 USD, compared to the most typical value of 0.11 USD in 2021 - it has retained ~52% of its value. In contrast, BTC stands at 20k USD, compared to its mean value in 2021 of 47k USD - it only retained 42% of that value.
So, someone who had put all of their savings in Turkish Lira would be better off today than someone who did so in BTC (and if we're comparing to the peaks for each year, it gets even worse - they would be left with only 39% for TRY, 29% for BTC).
Are there even worse currencies than the TRY? Probably. But the vast majority are actually doing much better, and even the TRY beat BTC as a store of value.
The fact that the USD didn't lose ~50% of its value in the last few months suggests the pro vs con is more mixed.