The US Dollar Lost 99.9% of its Value to Bitcoin in Just Last 8 Years
Whistleblower Edward Snowden, a Bitcoin advocate, tweeted on Monday, “Today I learned the dollar had lost 99.93% of its value since 2013 (relative to Bitcoin).”
Recently, Crypto Twitter also called on President Donald Trump to grant clemency to Snowden, activist Julian Assange, and Silk Road founder Ross Ulbricht.
In 2013, Bitcoin was worth a mere $100, and this month, the price of Bitcoin climbed to a new all-time high at about $19,950.
Not only USD, but Bitcoin has also actually wiped the floor with other fiat currencies like Venezuelan Bolivar and Argentine Peso.
In 2020, while the leading digital asset has been enjoying a rally attracting the attention of institutions, the US Dollar Index went from almost 103 to under 90.
“Institutional investors are keen on portfolio construction in the wake of Covid, and the ways they need to reposition themselves given how governments have injected stimulus into the system,” said Michael Sonnenshein, managing director of Grayscale Investments.
Interestingly, while the price of Bitcoin has all the space to rocket too; the limited supply of the leading digital currency only has 2.5 million left to be mined.
Since hitting a new high on several cryptocurrency exchanges, Bitcoin has gotten stuck in a range, trying to make up its mind if it wants to make a run for $20,000 or $17,000. Currently trading around $19,160, less than $1.79 billion has been recorded in volume.
However, the digital asset did make an all-time high weekly close over the weekend, keeping its gains over 167% run-up YTD.
Unlike the previous bull run of 2017 which was retail-driven, this time the financial industry is the one playing a bigger role in this market.
“The multitude of regulated crypto exchanges and custodians has eliminated the ‘career risk’ for institutional investors,” PwC’s Hong Kong-based Global Crypto Leader Henri Arslanian said in an interview with Bloomberg. “In 2017, there was retail FOMO. The question is whether we will see institutional FOMO in 2021.”
Having already run to just inches away from $20k, the market has been predicting some wild targets for this cycle that goes as high as $100k to $300k.