Bitcoin (BTC) has attracted an increasing number of investors who consider the flagship digital currency as a hedge against inflation since its launch.
In the five years leading up to Tuesday, February 15, 2022, the United States Dollar (USD) had lost up to 97.58 percent of its purchasing value in relation to Bitcoin. As a result, one dollar is now only worth 0.000023 BTC when compared to Bitcoin.
The value of the US dollar has plummeted as a result of the government’s constant money production, as evidenced by satoshi purchases. The role of Bitcoin as a viable alternative to the dollar has been put to the test, but the fact remains that during the last 50 years, inflation has eroded the value of the US currency by 85 percent. In contrast, Bitcoin’s value has remained relatively stable, despite the fact that acquiring a single unit of the cryptocurrency is challenging for the average investor; as a result, most investors opt to buy fractional shares of the world’s most valuable digital asset.
As a result, as the dollar’s purchasing power has fallen, the number of satoshis that can be purchased with a US dollar has decreased, despite the rise in the value of Bitcoin.
According to a recent Finbold analysis, the number of satoshis that could be purchased with one US dollar fell from 10,656 to 2,638, a 75.24 percent reduction, between February 1, 2020, and February 1, 2022. This amount is calculated by multiplying the price of Bitcoin in dollars by the value of satoshis in Bitcoin, which is 100,000,000. Despite significant market volatility, the decrease in the number of satoshis that a dollar can buy has been linked to Bitcoin’s over 300 percent price growth in the last two years.
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