The growing number of people who see the world’s pioneer digital currency as a strong hedge against inflation keeps on growing, making Bitcoin the darling of investors with no equal.
February 15 saw the USD lose a massive part of its purchasing power, up to 97.58%, against Bitcoin in the past five years. Contrast the value of a dollar to Bitcoin, and the value is thus 0.000023 BTC to 1 USD. The unprecedented rise is a call for more input from the cryptocurrency industry. Not only will it raise its value, but it can also be unstable if not properly handled.
According to experts’ opinions, the dollar’s falling value is due to the government’s continuous printing of money, adding that excess fiat currency in circulation often leads to a fall in value as supply is greater than demand. On the other hand, the circulation of Bitcoin is regulated in such a way that it determines its market price.
Those in the crypto industry are pretty sure that the role played by Bitcoin as a dependable alternative to the fiat currency has been put to the test, and the undeniable fact is that increased inflation drastically reduced the value of the U.S. dollar decades ago. Going by the industry’s recent success, Bitcoin’s growth over the past couple of years will undoubtedly provide advocates with the needed ammunition to back up their claims about allowing cryptocurrencies to become an option in a transaction.
In direct opposition to the dollar, the value of Bitcoin keeps on appreciating relative to the dollar. But this proved to be difficult for the average investor to purchase even a single part of the cryptocurrency. Due to the barrier, the majority of investors opted to own just a fraction of the shares of BTC.
$1 Can Only Buy Less Than 75% Satoshi
Going by the argument about the dollar’s weakness compared to Bitcoin, the quantity of the smallest denomination of Bitcoin purchasable using the USD has been on the decline relative to the increasing rise in the value of the BTC.
A recent report by Finbold revealed that between February 1, 2020, and February 1, 2022, the number of single Satoshis that an investor could buy with a dollar fell to 2,638 from 10,656, representing a decline of 75.24%.
Notwithstanding the periods of market instability experienced in the crypto industry, the U.S. dollar has so far failed to gain any significant advantage over Bitcoin. Additionally, the unit of Satoshi a dollar can buy is linked to a 300% increase in the price of Bitcoin over the last two years.
Bitcoin Price Review
At the time of writing, BTC is trading at $43,861, moving up by 3.91% last day and falling by 0.83 percent in the previous week.
The total market capitalization of Bitcoin stands at $831.5 billion. The dominance score over other cryptocurrencies is reported to be 42.3%, according to the CoinMarketCap industry analysis.