What a complete yolk! Comparing Bitcoin to Eggs and why it matters
Let’s talk about eggs. Eggs are a staple food for many around the world and one that has changed little since 1980. Free-range, grass-fed, organic; these are all changes and improvements in the egg industry, but the underlying product is fundamentally the same.
However, the price of eggs has been long but consistent, as the data below from the St. Lois Fed indicates. The average price of eggs in 1980 was less than $1, while in 2022 the same product costs around $3, a 3x price.
Due to the effects of long-term inflation, $1 in 1980 is equivalent to a purchasing power of about $3.60 Today. This increase amounts to an increase of $2.60 over 42 years. Throughout this time, the dollar had an average inflation rate of 3.09% per annum, produce a cumulative price increase of 259.56%.
Holding an asset like BTC is important both on a long-term horizon and on a short-term preference. If we change the unit of account from USD to BTC, we get a completely different chart. Measured in BTC, the price of eggs appears to have fallen drastically since 2015.
Using today’s Bitcoin price, in 2009 it would cost you $1 million for eggs, while in 2022 it would be almost 12,000 Sats (about $3.)
Although this is more of a theoretical argument than a practical one, it shows that the purchasing power of Bitcoin, compared to an everyday necessity like eggs, has increased dramatically in recent years.
The purchasing power of the dollar (and most fiat currencies) declines over time. Bitcoin is unique because its purchasing power has continued to increase after each halving cycle. Past performance is not indicative of future success, but Bitcoin’s mechanics do not change. There is a fixed supply of Bitcoin; no money printer operated by a central bank exists.
The amount of Bitcoin that was last active 5+ years ago has reached an all-time high of 25%, meaning a quarter of all Bitcoins haven’t moved in five years. Therefore, those who bought Bitcoin in 2017 can now buy more eggs than ever before with their BTC.
Good news for Bitcoin Hodlers.
For those interested, you can load up a debit card with Bitcoin using companies like Crypto.com, Ziglu, BitPay, Binance and many more. Once you’ve done this, you can use Bitcoin to buy eggs. With 1 Bitcoin you can buy 122,979 eggs at today’s price in a UK grocery store; or 1 egg for just 0.000008 BTC.
