According to Balaji (@balajis), the inflation of the US dollar acts as a global tax, impacting the purchasing power of individuals worldwide. With approximately $6 trillion printed since 2020, if this amount were distributed among only 330 million Americans instead of over 8 billion people globally, each individual would receive less than $1,000 instead of nearly $20,000. This redistribution scenario highlights the dilution of purchasing power, which is a crucial factor for traders to consider, especially in cryptocurrency markets where inflation hedges are often sought. Understanding the implications of dollar inflation can help traders strategize their investments in cryptocurrencies that are perceived as stores of value.