The past 5 years have seen US dollar losing a significant amount of its purchasing power in relation to one of the most famous cryptocurrencies, Bitcoin.
These past years, Bitcoin has shown amazing potential to its current and future investors for investment and saving money value as compared to US Dollar in the last decade. Consequently, a swarm of investors have flocked to investing in Bitcoin (BTC) ever since the cryptocurrency debuted, with a belief that the flagship digital currency can serve as a hedge against inflation.
As of February 15, 2022, Tuesday,
The USD has lost up to 97.58 percent of its buying power as compared to that of Bitcoin in the past five years. Thus, when compared to the value of one dollar to that of Bitcoin, we see that 1 USD is just worth 0.000023 BTC. Alternatively, we can say the value of USD was as little as $1.01, according to Finbold.
Purchases of satoshis has demonstrated that the US dollar’s
value has taken a downhill path as a result of the government’s continuous printing of money. The function of Bitcoin as a suitable alternative to the dollar was what was put particularly to test, but it does not change the fact that inflation has already reduced the value of USD over the last 50 years by 85 percent. In stark contrast to the figures related to USD, Bitcoin’s value has stayed relatively high, which on one hand makes it difficult for a typical investor to buy even a single unit of the crypto, as a result of which most investors prefer purchasing fractional shares of the most valuable digital asset in the world.
Now that the dollar’s buying power has weakened,
the amount of satoshis that could be bought with the US dollar have also continued to decline, as compared to the rise in value of BTC. According to a Finbold report, it is worth noting that the from 1 February 2020, to 1 February, 2020, the number of satoshis purchased with one US dollar saw a decline of 75.24 percent, falling from 10,656 in 2020 to 2,638 in 2022. The figures were thus obtained by multiplying the price of Bitcoin in dollars by 100,000,000, which is equivalent to the value of satoshis in Bitcoin. Keeping aside the periods of significant market volatility, the decline in number of satoshis that one dollar was able to purchase has often come to be associated with Bitcoin’s increase in price by over 300 percent in the past two years. That said, currently Bitcoin is trading up 3.91 percent, at the value of $43,861 in the last 24 hours, and is down 0.83 percent in the last week, as per the data given by CoinMarketCap. Bitcoin has a total of 42.3 percent dominance in the entirety of crypto market, with a total market of $831.5 billion.