The US Dollar (USD) Continues to Plunge Against Bitcoin as BTC Sits at $5,277 on Easter Sunday
In early 2009, the first block of Bitcoin blockchain, the genesis block has been created and 50 BTC were generated. Towards late 2009, a public sale of 1 USD = 1,309.03 BTC was launched on New Liberty Standard stock exchange.
During these very early days in 2010, the famous first online purchase of Papa John’s pizza was made using BTC for 10,000 coins. In July of that year, the Bitcoin price went from $0.008 to $0.08.
It was in February 2011 that Bitcoin reached parity with the US Dollar then going to over $200 in April 2013, $1,200 in November 2013, and $2,000 in May 2017. From then onwards, the price of BTC saw an increment against the US Dollar as it reaches the peak at $20,000 in December 2017.
As Bitcoin continues to climb upwards, the US Dollar only dropped more and more. In the coming years, it is expected to take a further serious plunge as BTC is predicted to rise to $100k, $1000k and as high as $1 million.
The US Dollar continues to plummet against Bitcoin over the last 10 years. pic.twitter.com/XDCGEFliHL
— Dan Hedl (@danheld) April 20, 2019
What further contributes to Bitcoin’s increasing value is its limited supply. There can never be more than 21 million BTC created. This hard limit on Bitcoin’s supply along with the lost coins that can never be retrieved makes the flagship cryptocurrency more valuable. This is in complete contrast with the fiat currencies that can be created out of thin air by the central banks.
As we recently reported, the upcoming halving would further make it more valuable as the inflation would drop down 1.8 percent which will make BTC even more deflationary than the US Dollar at its targeted 2 percent inflation of the Fed.
1 btc = 100,000,000 satoshis
1 satoshi = 100,000,000 cryptos
really puts things into perspective!
— Pierre Rochard (@pierre_rochard) April 21, 2019
While Bitcoin’s value keeps on rising where 1 BTC will always be equivalent of 100,000,000 satoshis. This is so not the case with the US Dollar.
Over the last 106 years, the dollar has plummeted in value. In 1913, a $100 dollar would get a person as much of the amount of food, clothes and other necessities as the $2,529 would buy in 2018.
When the dollar, the global reserve currency loses value, it’s called inflation which happens due to the federal government creating more money, demand rises or constraints on supply.
When the dollar loses value, it drives the prices of import higher, making oil and gas prices to rise. A declining dollar also affects your standard of living and increases income inequality.
Between 2000 and 2006, average wages remained flat despite an increase of 15 percent in worker productivity. During that time, which was before recession corporate profits increased 1.3 percent per year. After the recession, rich just got richer as top 10 percent of the earners have 50 percent of all income while top 1 percent earned 20 percent of all incomes, the highest percentages recorded in the last 100 years.
Live Bitcoin (BTC) Price:
1 BTC/USD =$49,414.1939 change ~ -0.13%