Bitcoin’s purchasing power outpaces US dollar: Game-changer in financial world?

While the BRICS countries – Brazil, Russia, India, China, and South Africa – are mulling the introduction of an alternative currency to the United States dollar as global reserve money, and many people are voicing their opinion that the USD would no longer be the world standard, Bitcoin (BTC) has been touted as a substitute, and its purchasing power could 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 been steadily weakening over the years, whereas that of the flagship decentralized finance (DeFi) asset has been sharply rising since 2010, according to the macro comparison chart shared by the finance analyst known as Seth on April 4.

Dollar versus Bitcoin

Specifically, the chart shows the Consumer Price Index (CPI) for all urban consumers in terms of purchasing power of the consumer dollar in the US city average, which has been declining since the 1960s, dropping from 300 to the current 33.2 points (88.93%).

On the other hand, the purchasing power of Bitcoin in the same context has shown as quickly climbing, soaring from 33 in 2010 to the current 255 points, or a whopping 672.73% increase over the observable period of only 13 years.

At the same time, the list of people warning of the dollar’s declining dominance as the world’s reserve currency is growing, recently including former U.S. President Donald Trump, who has told his supporters and the media from his Florida home that the U.S. 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 job openings in the US. fell more than expected (JOLTS), boosting recession fears. 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, the maiden cryptocurrency was at press time changing hands at the price of $28,500, which represents a 0.93% gain in the last 24 hours, adding up to the positive price change of 4.43% over the previous seven days and 27.11% across the past month, as charts indicate.

Notably, 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 its end.”

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Comments

Difference between AES and DES

AES (Advanced Encryption Standard) and DES (Data Encryption Standard) are both symmetric key encryption algorithms, which means they use the same key for both encryption and decryption. However, they differ in several key ways: Key size: AES supports key sizes of 128, 192, or 256 bits, while DES only supports a key size of 56 bits. This makes AES much more secure against brute-force attacks. Block size: AES uses a block size of 128 bits, while DES uses a block size of 64 bits. This means that AES can encrypt larger amounts of data at once, and is more efficient for modern computing architectures. Algorithm complexity: AES is a more complex algorithm than DES, which means that it is generally more difficult to attack. DES has been shown to be vulnerable to certain types of attacks, particularly those that exploit its relatively small key size. Security: AES is generally considered to be more secure than DES, and is currently recommended by security experts as the preferred encryp...

crypto

Crypto, short for "cryptocurrency," refers to a digital or virtual currency that uses cryptography to secure and verify transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not controlled by a central authority like a government or bank. Instead, they rely on a distributed ledger technology called blockchain, which allows for secure, transparent, and immutable record-keeping. The most well-known cryptocurrency is Bitcoin, which was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Since then, thousands of other cryptocurrencies, often referred to as "altcoins," have been created, each with their own unique features and use cases. Cryptocurrencies can be used for a variety of purposes, including as a medium of exchange, a store of value, and a speculative investment. Some people also view cryptocurrencies as a way to protect against inflation or as a means of financial freedom,...

Ethereum hits an 8-month high as it nears $2,000

Ethereum ( ETH ), the world’s second-largest cryptocurrency , has reached an 8-month high as it continues its upward trend toward $2,000. The price of ETH rose to $1,909 on Wednesday, April 5, marking a 5% increase in just 24 hours, this surge comes amid a broader market rally that saw Bitcoin ( BTC ), the largest cryptocurrency, test resistance at $29,000. Ethereum’s on-chain activity has been steadily increasing over the past few months, with more and more users utilizing the network for various purposes. This uptick in activity has led to a surge in demand for Ethereum, with sharks (addresses holding 100-10,000) ETH accumulated $4.24 billion in the past 9 months, per the data from crypto analytics firm Santiment on April 5. According to Ali Martinez, a cryptocurrency trading expert, Ethereum is currently showing signs of breaking out, and the next key resistance level lies beyond $2,100. Furthermore, Martinez suggests that there...

Earn with Market and forex

Search This Blog