What is the concept of Bitcoin's purchasing power compared to the US dollar?

Answered on : 2024-01-24

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Bitcoin's purchasing power refers to its ability to maintain or increase its value over time when compared to the US dollar. Unlike fiat currencies, such as the US dollar, which can lose value due to inflation, Bitcoin has a limited supply, making it resistant to inflation. As a result, some people view Bitcoin as a store of value and a hedge against currency devaluation. Its purchasing power can be influenced by factors like market demand, adoption, and macroeconomic conditions. Bitcoin's unique properties, scarcity, and decentralized nature contribute to its potential to preserve or increase purchasing power over time, which has led to its use as a digital asset for investment and wealth preservation.

References:

- [5]: Bitcoin's purchasing power outpaces US dollar: Game-changer in financial world?

- [6]: Why Bitcoin's Buying Power Keeps Rising

- [48]: US dollar loses 97% of its purchasing power against Bitcoin in the last 5 years

- [52]: Bitcoin Offers A Chance For Increased Purchasing Power, Unlike Fiat Currency