Will ‘money printer go brrr’ rob Bitcoin of its all-time high?

All News All News Except Press Releases Crypto Imported

What price high must Bitcoin hit to account for the past three years of U.S. dollar inflation?

Bitcoin’s (BTC) price rose to almost $20,000 in 2017 before losing more than 80% of its value at the end of the initial-coin-offering boom. In the years since, the asset has never again come close to these prolific price highs — until now. Crypto’s first currency is once again trading a few percentage points away from its previous milestone as of press time.

While crossing $20,000 may soon be celebrated as a psychologically significant threshold, Bitcoin will not actually reach its all-time high in terms of buying power at that point thanks to inflation.

“If you bought #Bitcoin at the top in December 2017, you won’t truly recover your buying power until we hit 21.24k,” podcaster Vlad Costea said in a tweet on Tuesday. Costea used $20,000 as Bitcoin’s high, putting the numbers and dates into an inflation calculator to determine the most accurate figures.

U.S. dollar holders lose approximately 2% of their purchasing power per year on average from inflation. Official data reveals 2.13% inflation in 2017, 2.49% in 2018, 1.76% in 2019 and 1.86% in 2020.

Bitcoin’s last all-time high varied across exchanges. On Coinbase, based on TradingView.com data, Bitcoin reached a record high of $19,660. Using this number, Bitcoin must reach $20,884 to once again hold the same purchasing power as it did in 2017, according to Officialdata.org’s inflation calculator. Since 2017, the U.S. dollar has lost about 6% of its value.

Other previous historical Bitcoin levels also show inflationary impact, although not particularly notable. Bitcoin’s $1,200 level in 2013 values about $1,341 in today’s dollars.

With all the United States money printing in 2020, however, the future will tell whether this year will ultimately have a greater inflationary impact on the U.S. dollar than the currently stated sub-2%.

Source: , CoinTelegraph

Facebook Comments