Crypto Featured Markets

#BTC the hedge against Fiat devaluation?

“Bitcoin is the most important invention in the history of the world since the Internet.”—Roger Ver, Bitcoin angel investor, and evangelist.

With the continous growth in supply of the US dollar, the purchasing power of the dollar is on the decline. In fact, $1 in 1913 had the same purchasing power as $26 in 2020. Back in 1933, a dollar could buy 10 bottles of beer compared to just a small cup of coffee at McDonalds in present day.

The Federal Reserve Act was passed by the United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States. This act granted Federal Reserve banks the ability to manage the money supply in order to ensure economic stability. Back in 1913, a dollar could get you 30 Hershey’s chocolate bars.

As more and more dollars are fed into the system, the purchasing power of the dollar is weakening.

The dollar supply in the U.S. has skyrocketed over the last two decades, up from $4.6 trillion in 2000 to $19.5 trillion in 2021.

The effects of the rise in money supply were amplified by the financial crisis of 2008 and more recently by the COVID-19 pandemic. In fact, around 20% of all U.S. dollars in the money supply, $3.4 trillion, were created in 2020 alone.

With the dollar weakening and the current banking crisis, more and more people are turning towards Bitcoin for the financial freedom and security. Since the inception of Bitcoin, the US dollar has lost 26% of its value whereas Bitcoin has risen to $28000 (current value) from 0.0$.

“Bitcoin is the most stellar and most useful system of mutual trust ever devised.”
― Arif Naseem



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