Ten years ago, a person bought what today is equivalent to USD 58,000 worth of Bitcoin for 1 US dollar. In the past 12 months, the price of the US dollar has fallen by 80% relative to the pioneering cryptocurrency.
In the last decade, the US dollar has had a big devaluation of 99.998% against Bitcoin. Ten years ago, 1 US dollar was equivalent to 1.11 BTC, that is, 111 million satoshis. The latter is the smallest unit of Bitcoin, which now equals more than USD 58,000.
That same US dollar can now only buy 1,906 satoshis (0.00001944 BTC), according to usdsat.com. This website focuses on tracking the purchase value of 1 US dollar in Bitcoin.
On this portal, it is possible to see how the US fiat currency has devalued against Bitcoin in recent years. After being worth more than 1 BTC 10 years ago, the US dollar became worth 0.23, 0.003, and 0.00016 BTC in the following years.
In the last year, the US dollar has had an 80% drop compared to the main cryptocurrency on the market. Twelve months ago, the US fiat currency was equivalent to 9,818 satoshis (0.00009818 BTC). That is equivalent to 5 times more Bitcoin than each US dollar can buy today.
The drop of the US dollar has been so big that it is not only evident in its relationship with Bitcoin. The US currency index, the USDX, has also shown signs of the weakness of the national fiat currency lately. It has even reached the lowest levels in its history recently. Furthermore, the dominance of the US dollar as a central bank reserve asset seems destined to fall, as it has been doing.
Many possible elements are at stake, but one of the main problems is the indiscriminate printing of money. Jerome Powell himself, chairman of the US Federal Reserve, admitted that his country has been printing more money than necessary.
Bitcoin vs. the US Dollar over Time
Ten years ago, Bitcoin reached the price of 1 US dollar for the first time in its history. Since then, the cryptocurrency has come a long way, but it does not seem to have stopped growing.
In recent days, Bitcoin exceeded USD 52,000 for the first time, and its all-time high is around USD 52,600. One day before that, the first cryptocurrency had broken the USD 50,000 barrier for the first time. That seemed unthinkable 10 years ago when 1 US dollar was equivalent to 1 BTC.
The price of Bitcoin has increased so rapidly that, a few months ago, it still had not broken its all-time high of 2017, when it exceeded USD 20,000. In December 2020, the price of the pioneering cryptocurrency had to exceed USD 21,000.
Just two months after breaking that barrier, it looks as though it will triple that price. That would put it exactly where the estimates of renowned analysts like Willy Woo predict. He says that Bitcoin will trade at USD 63,000 per unit in the short term. A candlestick similar to the one recorded just a few days ago, with USD 8,000 higher, would take Bitcoin to that level.
By Alexander Salazar