This section attempts to prove that Bitcoin is theoretically a superior form of money, giving credence to the Bitcoin maximalists that claim it’s a revolutionary product. The two most important functions of currencies are as a store of value and medium of exchange. The accessibility and digital infrastructure around paper currencies makes them an excellent medium of exchange but a poor store of value unless backed by gold, silver, or another commodity. Without an anchor, central banks can create money without checks and balances, leading to steady monetary depreciation. The image below shows the exponential rise of inflation in the dollar since 1971, providing a visual representation of paper currency debasement.
(Source: Monetary Regimes and Inflation, p. 11)