Bitcoin’s purchasing power surpasses the US dollar: Game-changer in the financial world?
While the BRICS countries – Brazil, Russia, India, China and South Africa – are considering the introduction of an alternative currency to the US dollar as global reserve money, and many are voicing their opinion that the USD will no longer be the world standard, Bitcoin (BTC) has been touted as a substitute, and its purchasing power may be one of the reasons.
As it happens, the purchasing power of the USD, which determines the amount of products and services you can buy with it, has steadily weakened over the years, while that of the flagship decentralized finance (DeFi) has risen sharply since 2010 , according to the macro comparison chart shared by the financial analyst known as Seth on the 4th of April.
Dollar to Bitcoin
Specifically, the chart shows the Consumer Price Index (CPI) for all urban consumers in terms of the purchasing power of the consumer dollar in the US urban average, which has declined since the 1960s, falling from 300 to today’s 33.2 points (88.93%). ).
On the other hand, the purchasing power of Bitcoin in the same context has been shown to climb rapidly, rising from 33 in 2010 to the current 255 points, or a whopping 672.73% increase over the observable period of just 13 years.
At the same time, the list of people warning of the dollar’s waning dominance as the world’s reserve currency is growing, recently including former US President Donald Trump, who has told supporters and the media from his Florida home that the US dollar was crashing and would “no longer be the world standard.”
Research from Kaiko noted on April 5:
“The dollar took a hit yesterday after the number of vacancies in the US. fell more than expected (JOLTS), which increases fears of a recession. Although BTC remains negatively correlated with the US dollar, the correlation is now almost negligible, falling from -60% to -23% YTD.”
Bitcoin price analysis
Meanwhile, at press time, the virgin cryptocurrency was exchanging hands at a price of $28,500, representing a gain of 0.93% over the past 24 hours, adding to the positive price change of 4.43% over the past seven days and 27.11% in the last few days. month, as diagrams indicate.
Especially Robert Kiyosaki, author of the best-selling personal finance book ‘Rich Dad Poor Dad’ is also skeptical about the future of the USD, recommending his followers to buy Bitcoin, gold and silver and referring to the US fiat currency as “toilet paper” and “fake money” that is pushing the “American empire to the end.”
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