As Bitcoin outpaces fiat, what’s next for global finance?
The post As Bitcoin outpaces fiat, what’s next for global finance? appeared on BitcoinEthereumNews.com. As Bitcoin’s value overtakes major currencies by 99.5%, is this the start of a new era where digital currencies challenge traditional financial systems? The global economy has faced severe challenges in recent years, including rampant inflation and slowing growth rates since the post-pandemic era. In the U.S., recent reports indicate a slower-than-expected GDP growth of 1.6% in Q1, missing forecasts of 2.5% growth and falling well below the 3.4% recorded in Q4. Simultaneously, the core PCE (personal consumption expenditures) price index—an essential gauge of inflation for the Federal Reserve—has risen by 3.7% annually in Q1, overshooting expectations set at 3.4%. Against this backdrop, Bitcoin (BTC) has experienced wild swings in recent weeks, trading at around $62,000 as of April 29. With its decentralized nature, BTC has garnered both praise and criticism regarding its potential as a store of value. Proponents argue that Bitcoin offers a hedge against inflation and economic uncertainty, while critics point to its price volatility and regulatory concerns as prominent risks. Given this context, let’s explore Bitcoin’s performance against major global currencies since its inception to determine whether it has truly served as a reliable store of value. The declining purchasing power of the U.S. dollar against Bitcoin The U.S. dollar, historically regarded as the backbone of the global economy, has experienced a notable decline in its purchasing power relative to Bitcoin since the latter’s inception. Once commanding considerable value, the dollar now equates to a modest 0.000016 BTC as of April 29, indicating a 99.5% decrease in value against Bitcoin. USD TO BTC lifetime chart | Source: Google News This disparity becomes even more evident when considering Bitcoin’s impressive appreciation of nearly 800% against the dollar in just the past five years. BTC to USD 5-year chart | Source: Google News Traditionally, the dollar’s strength has…
The post As Bitcoin outpaces fiat, what’s next for global finance? appeared on BitcoinEthereumNews.com.
As Bitcoin’s value overtakes major currencies by 99.5%, is this the start of a new era where digital currencies challenge traditional financial systems? The global economy has faced severe challenges in recent years, including rampant inflation and slowing growth rates since the post-pandemic era. In the U.S., recent reports indicate a slower-than-expected GDP growth of 1.6% in Q1, missing forecasts of 2.5% growth and falling well below the 3.4% recorded in Q4. Simultaneously, the core PCE (personal consumption expenditures) price index—an essential gauge of inflation for the Federal Reserve—has risen by 3.7% annually in Q1, overshooting expectations set at 3.4%. Against this backdrop, Bitcoin (BTC) has experienced wild swings in recent weeks, trading at around $62,000 as of April 29. With its decentralized nature, BTC has garnered both praise and criticism regarding its potential as a store of value. Proponents argue that Bitcoin offers a hedge against inflation and economic uncertainty, while critics point to its price volatility and regulatory concerns as prominent risks. Given this context, let’s explore Bitcoin’s performance against major global currencies since its inception to determine whether it has truly served as a reliable store of value. The declining purchasing power of the U.S. dollar against Bitcoin The U.S. dollar, historically regarded as the backbone of the global economy, has experienced a notable decline in its purchasing power relative to Bitcoin since the latter’s inception. Once commanding considerable value, the dollar now equates to a modest 0.000016 BTC as of April 29, indicating a 99.5% decrease in value against Bitcoin. USD TO BTC lifetime chart | Source: Google News This disparity becomes even more evident when considering Bitcoin’s impressive appreciation of nearly 800% against the dollar in just the past five years. BTC to USD 5-year chart | Source: Google News Traditionally, the dollar’s strength has…
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