1 US Dollar is Worth 1,700 Satoshi, Losing Up to 99% Purchasing Power vs Bitcoin Every Year

March 13, 2021, 1:00 PM AEST - 8 months ago

We recently saw the USA approve a $1.9 Trillion Dollar stimulus package, which in turn may suggest the purchasing power of the US Dollar vs Bitcoin might be on further decline.

USDSAT Historical Performance by usdsat.com

US Dollar vs Bitcoin Satoshi

If we take a look at the USD price vs the Satoshi (1 hundred millionth of a Bitcoin) we can see it’s losing up to 99% of it’s purchasing value every year since Bitcoin was created.

DatePricePercent Change
1 year ago12,577 sats– 86.038%
2 years ago25,698 sats– 93.167%
3 years ago10,967 sats– 83.988%
4 years ago81,334 sats– 97.841%
5 years ago238,159 sats– 99.263%
6 years ago340,290 sats– 99.484%
7 years ago158,380 sats– 98.891%
8 years ago2,257,851 sats– 99.922%
9 years ago20,366,599 sats– 99.991%
10 years ago108,932,462 sats– 99.998%
USDSAT Historical Performance

The $1,400 stimulus checks that are being dished out by the US Government could see this trend continue, with downtrend for the US Dollar vs Bitcoin.

US Dollar Purchasing Power

Since the year 1900 the US Dollar has lost approximately 97% of its purchasing power, according to data provided by Statista.

This essentially means when converted to the value of one US dollar back in 1900, goods and services that cost $1 would now cost $31. It is important to remember that the prices of individual goods and services inflate at different rates than currency, therefore the numbers must only be used as a guide.

Purchasing power of one US dollar (USD) – Statista

Understanding Purchasing Power And Inflation

Key points:

  • Purchasing power is the amount of goods or services that a unit of currency can buy at a given point in time.
  • Inflation reduces the value of a currency’s purchasing power, having the effect of an increase in prices.
  • Central banks try to keep prices stable through maintaining the purchasing power of the currency by setting interest rates and other mechanisms.
  • As a general rule, countries attempt to keep inflation fixed at a rate of 2 percent as moderate levels of inflation are acceptable, with high levels of deflation leading to economic stagnation.
  • Retirees must be particularly aware of purchasing power loss since they are living off of a fixed amount of money. They must make sure that their investments earn a rate of return equal to or greater than the rate of inflation so that the value of their nest egg does not decrease each year.

Australia: Inflation rate from 1984 to 2025* – Statista

Australia has one of the world’s largest economies and is a significant global importer and exporter. It is also labeled as one of the G20 countries, also known as the Group of Twenty, which consists of 20 major economies around the globe. The Australian economy is highly dependent on its mining sector as well as its agricultural sector in order to grow, and it exports the majority of these goods to eastern Asian countries, most prominently China. Large quantities of exports have helped Australia maintain a stable economy and furthered economic expansion, despite being affected by several economic obstacles.

According to the Australian Bureau of Statistics the Consumer Price Index (CPI) for Australia has been rising pretty consistently for the past 10 years.

Australia Consumer Price Index (CPI) Percent Change Per Quarter

Along with the total quarterly data, you can also check individual the CPI groups such as Food, Alcohol, Transport, Clothing and Housing. And also drill down even further by city into Sydney, Brisbane, Melbourne and other major cities. We can use this data to keep an eye on the cost of living in Australia, as ordinary living expenses start to rise.

Weighted average of eight capital cities – CPI Percent Change Last Quarter

When a currency’s purchasing power decreases due to excessive inflation, serious negative economic consequences arise, including rising costs of goods and services contributing to a high cost of living, as well as high interest rates that affect the global market, and falling credit ratings as a result. All of these factors can contribute to an economic crisis.

Data sources used in this article:

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