Does the US Dollar’s 100-Year History Ensure a Great Future for Bitcoin?


  • The US Dollar has lost a whopping 95% of its value since the establishment of the Federal Reserve back in 1913.
  • In the same breath, we can see that since its inception, BTCs value has increased by more than 8.5 million percent.

    It is widely believed by the masses that the US dollar is one of the safest fiat currencies in the world today. However, a closer look at the dollar’s economic history from the past 100 years shows us that the asset has lost an insane amount of its previously held power.

More On The Matter

From a purely technical standpoint, we can see that since the 1900s, the US dollar has rapidly depreciated in value — primarily because there was only $7 billion in circulation during the 1920s.

However, over a century later, the dollar supply has increased to a whopping $13.3 trillion. As a result of this abundance, the currency’s purchasing power has reduced by an insane 95%.

Dollar lost value over time

Chart Courtesy of Merk Investments LLC.

Additionally, as can be seen from the chart presented above, the US Dollar has not shown any signs of a trend reversal since the late-1940’s.

If these signs were to have been displayed by Bitcoin or any other premier digital currency, the mainstream media would have harped on the point so much that the asset class would have vanished almost overnight.

However, when looking at the Bitcoin’s financial trajectory thus far, we can see that the altcoin’s value has spiked by a mind-boggling 8.5 million percent in a period of less than 10 years. To put things into perspective, no other financial commodity in the history of mankind has ever exhibited such amazing growth numbers.

To elaborate on the point further, we can also see that following last year’s bear market which ended in Nov 2018, Bitcoin was able to still generate a return quotient of 59,100 percent

All of these statistics point to the fact that BTC is definitely the more appealing monetary prospect when compared to the US Dollar.

Final Take

In closing out this piece, it should be made clear that despite the mainstream media at large vilifying the crypto industry over the past decade or so, the long-term financial potential of the digital currency market far outweighs the power that the US dollar currently possesses.

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