Having an inflationary money makes it easier to pay your debt.
Indeed let's think I give you 10,000 dollar today and you are supposed to give them back to me in 10 years. Let's say that this sum is fixed and you have to exactly pay me that in 10 years
If an inflationary policy is made by the FED then the price of objects will go up meaning that :
- Today I can buy bread with 1 dollar
- In ten years, I will have to pay 10 dollar to buy bread
This may seem wrong but it is okay because salaries of people is also supposed to increase. So the baker will receive more money and we all have more money such as we do not really feel the inflation in our daily life because there will be more dollar in circulation. The bills and the loans than banks and FED are injecting in economy.
So for you in 10 years it will be actually easier to pay your debt !
However with Bitcoin it is different ! Because no one will inject supply of bitcoin in the system and actually the total number of bitcoin decrease over time !
Therefore if I give you 10 000 bitcoin today (wahou!) it will be really hard to pay me back for you because in 10 years there will be less bitcoin than today !