Bitcoin (BTC) has gained considerable attention from investors who consider the namesake cryptocurrency as an inflation hedge ever since its launch.
In the five years leading up to today, the United States Dollar (USD) has lost 97.58% of its purchasing power as compared to Bitcoin (BTC). Consequently, 1 dollar is now only worth 0.000023 Bitcoin (BTC) in comparison.
The value of the US dollar (USD) has plummeted as a result of the government’s constant money production, as evidenced by satoshi purchases.
The role of Bitcoin (BTC) as a credible option to the US Dollar (USD) has been called into question, but the facts show that during the last 50 years, inflation has eroded the value of the US Dollar (USD) by 85%.
By contrast, the value of Bitcoin (BTC) remained relatively stable, despite the fact that acquiring an entire unit of the biggest cryptocurrency is challenging for the average investor. As such, instead of acquiring one unit, investors opt to acquire partial shares of Bitcoin (BTC).
Therefore, there has been a decrease in the number of satoshis that can be bought via the US Dollar (USD) even though the price of Bitcoin (BTC) has increased significantly, due to the deterioration of the purchasing power of the US Dollar (USD).
In two years’ time, namely between February 1, 2020, and February 1, 2022, there has been a 75.24% downturn in the number of satoshis that can be acquired with the US Dollar (USD). More precisely, this percentage constitutes a fall from 10,656 to 2,638 in two years.
The total amount is computed by multiplying the value of Bitcoin (BTC) in dollars by the value of satoshis in Bitcoin (BTC), which is 100,000,000.
The 300% growth in price of the biggest cryptocurrency in two years is ultimately the reason for the deterioration of the amount of satoshis that can be acquired with 1 US Dollar (USD), even though there have been instances of high volatility in the market in the same time period.
At the time of writing, the biggest cryptocurrency is changing hands at $43,861, having incurred a rise of 3.91% in a 24-hour period. Otherwise, in a week’s time, Bitcoin (BTC) has incurred a 0.83% downturn.
Bitcoin (BTC) has a 42.3% market share of the whole cryptocurrency market, with a total market cap of $831.5 billion.