Understanding inflation goes beyond just watching prices climb. The real issue? Your money's purchasing power keeps shrinking. When governments need cash, they basically have two playbooks: borrow heavily or fire up the printing press. Both roads lead to the same destination—inflationary pressure crushing the economy.

Think about it. Whether it's Treasury bonds or newly minted currency flooding the market, the outcome's identical. Too much money chasing the same goods. The government's funding strategy doesn't just affect headline numbers; it fundamentally reshapes how value flows through the entire financial system. For crypto traders and investors, this is crucial—understanding why traditional money loses steam helps explain why alternative assets gain traction during these cycles.