Compare Bitcoin to the dollars and coins in your pocket!
Regular money (like dollars) can be printed in unlimited amounts by governments. This can make each dollar worth less over time - that's called inflation. Bitcoin is different because there will only ever be 21 million, so it can't be inflated away.
Think about your allowance money. Let's say you get $10 a week, and a candy bar costs $1. You can buy 10 candy bars with your allowance. But what if next year, the same candy bar costs $2? Now your $10 only buys 5 candy bars. That's inflation - your money buys less stuff over time.
Why does this happen? One big reason is that governments can print as much money as they want. When they print too much, each dollar becomes worth less, and prices go up.
Bitcoin is different. No one can make more Bitcoin beyond the 21 million that will ever exist. This means Bitcoin can't be "inflated away" by creating more and more of it.
Here are some other differences between Bitcoin and regular money:
These differences are why some people call Bitcoin "sound money" - money that keeps its value over time and can't be controlled by others.
1. What happens when governments print too much money?
2. Why might Bitcoin be better at storing value than regular money?
You got 0 out of 2 correct!