CandleFocus

Bitcoin compound inflation of 7% since 2020 canceled out by 900% gains while USD declines 20%

The article highlights the differences in inflation rates between Bitcoin and the US dollar and the impact on their purchasing power over time. Bitcoin has a low inflation rate of 0.83% compared to the dollar's peak of 9.1% in 2022. When comparing the cumulative inflation rate from 2020 to 2025, Bitcoin's value has risen around 960% while the US Dollar Index (DXY) has only risen 12% in nominal terms. However, when adjusted for inflation, the real value of the DXY drops significantly, highlighting the erosion of the dollar's purchasing power. In contrast, Bitcoin's inflation-adjusted price remains relatively stable, emphasizing its ability to preserve purchasing power compared to fiat currencies. The article concludes that Bitcoin serves as a hedge against currency devaluation and underscores the importance of inflation-adjusted analyses in assessing long-term value.

Related News