Bitcoin (BTC) since its inception has attracted a growing number of investors who see the leading cryptocurrency as a hedge against inflation.
As of Tuesday, February 15, 2022, the US Dollar (USD) has lost 97.58% of its purchasing power relative to Bitcoin over the past five years. For comparison, 1 USD is now worth only 0.000023 BTC.
BTC purchases show that the value of the US dollar has fallen as a result of the government’s continued printing of money. In particular, Bitcoin’s function as a viable alternative to the dollar has been tested, but the truth is that inflation has already fallen. The value of the US dollar has increased 85% in the last 50 years. In contrast, Bitcoin’s value remained relatively high, making it difficult for a typical investor to purchase a single cryptocurrency; As a result, most investors choose to buy partial shares of the world’s most valuable digital asset.
With 1 Dollar, 75% Fewer Satoshis Can Be Purchased Compared to 2 Years
Accordingly, as the purchasing power of the dollar weakened, the amount of satoshi that can be purchased with the US dollar continued to decrease with the rise in Bitcoin value.
According to a recent Finbold report, between February 1, 2020 and February 1, 2022, the number of satoshis that can be purchased for $1 fell 75.24% from 10,656 to 2,638. Despite periods of significant market volatility, the decline in the number of satoshi a dollar can buy has been associated with Bitcoin’s price increase of over 300% over the previous two years.
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