St. In a blog post published and updated in June 2022, the St. Louis Federal Reserve compares buying eggs with Bitcoin (BTC) and the US dollar (USD). According to interesting results, when inflation rates in egg prices are compared with BTC and USD, it seems that BTC manages inflation better than the US dollar.
Since the beginning of 2021, the cost of eggs with BTC and USD is higher for both currencies - 39% and 73% respectively. However, with BTC/USD trading at current levels, the comparison is less helpful as the US Consumer Price Index (CPI) annual increase is below the Fed's 2% target.
The "Egg inflation" seen in 2023 is significantly lower than Bitcoin's last halving year in 2019. In US dollar terms, price increases appear to be more stable.
The US dollar index (DXY) reached its highest level in almost a year this month, while the US economy is showing warning signs and the likelihood of a recession in 2024 is increasing. Even the Fed's own data puts the probability of a recession in September at close to 60%.
Do you think Bitcoin is more successful than the US dollar in fighting inflation? Join the discussion by sharing your comments!#Bitcoin#inflation #USdollar
Since the beginning of 2021, the cost of eggs with BTC and USD is higher for both currencies - 39% and 73% respectively. However, with BTC/USD trading at current levels, the comparison is less helpful as the US Consumer Price Index (CPI) annual increase is below the Fed's 2% target.
The "Egg inflation" seen in 2023 is significantly lower than Bitcoin's last halving year in 2019. In US dollar terms, price increases appear to be more stable.
The US dollar index (DXY) reached its highest level in almost a year this month, while the US economy is showing warning signs and the likelihood of a recession in 2024 is increasing. Even the Fed's own data puts the probability of a recession in September at close to 60%.
Do you think Bitcoin is more successful than the US dollar in fighting inflation? Join the discussion by sharing your comments!#Bitcoin#inflation #USdollar