Amidst a host of countries seeking alternatives to the deteriorating dominance of American currency, there is one digital asset coming ahead. Specifically, Bitcoin’s purchasing power is currently outpacing the US Dollar, according to a recent analysis.
The BRICS countries — Brazil, Russia, India, China, and South Africa — are all developing international alternatives to USD. Moreover, their eagerness to develop an answer to the global reserve currency has led to lessening purchasing power. Conversely, the most prominent digital asset, Bitcoin, is continuing to grow in that regard.
BTC Beating Out the US Dollar
Headlines have seemingly been dominated by the growing concern over the economic state of the US. Specifically, as macroeconomic factors continue to require a Federal Reserve fight against inflation, the currency is faltering on an international level, and a potential national debt default is just on the horizon.
Amidst these realities, Bitcoin has seen its purchasing power actively outpace that of the US dollar. Specifically, a finance analyst, known simply as Seth, has shared a chart that shows the falling purchasing power of the US Dollar in comparison to BTC.
Purchasing power is a metric that determines the products or services that you can purchase with any given currency. Moreover, the US dollar has decreased steadily since the 1960s. Alternatively, Bitcoin has noted a steady increase since 2010.
The chart showcases the Consumer Price Index (CPI) for urban consumers in relation to purchasing power of hte US dollar in the city average. Subsequently, that chart shows that the purchasing power has fallen from 300 in the 1960s, to its current 33.2 points.
Conversely, Bitcoin has only increased, growing from 33 in 2010 to reach an astronomical 255 points in 13 years. Again, that is showing an increase in purchasing power for the digital asset at an incredible 672.73%.