While the USD has been losing value to inflation year over year, bitcoin has only seen upwards trends in price.
In the past 10 years, the usd has lost nearly 99.5% of it's value when compared to bitcoin which displays bitcoin at a 22,000% increase since the beginning of that 10 year timespan.
The U.S dollar has often been described as the most powerful currency or atleast the most stable. (The AED and Swiss franc actually hold this position) but in the news, it's always hyping up the U.S financial industry as the leading game player in the global financial markets.
It almost seems as if it's fake news? That's a story for another timeline, but for now, let's discuss just how Bitcoin was able to maintain such a strong level of growth without an organisation to promote it or even represent it.
In this graph, we're able to see how bitcoin had began at 0.09$ roughly 13 years ago as of 23'. We've reached a peak of 68,991$ in 2021 which feels like it had been ages away even though it had only been roughly a year.
A few reasons for bitcoin outperforming the U.S dollar are the gradual acceptance of cryptocurrencies by mainstream financial institutions, a lack of depreciation, excessive quantitative easing, and an excess in liquidity, something that is unchallenged by the stock market for example. Not to mention bitcoin's limited supply unlike the U.S dollar which regularly prints money, and a lack of bitcoin's vulnerability to geopolitical tension and economic uncertainty. Right at the peak of covid, bitcoin had gone up to it's all time high, something we haven't experienced since then. This says alot about how people think, specifically how much money was pumped into investors' pockets during the beginning of the recession - it could also be blamed on the fact that people had held more hope during times of uncertainty, fear, and worry.
