Bitcoin or the flagship cryptocurrency is often regarded as an effective hedge against inflation by investors. New research revealed that during the last five years, the US paperback lost around 97% of its purchasing power value against BTC. Many financial experts have criticized the Fed’s policy of printing more money to tackle the recent economic collapse.
Meanwhile, some have called the paperback the biggest Ponzi scheme. There is no limit for the government to print new money and put it into circulation. Financial advisors like Robert Kiyosaki claim that the people are bearing the burden of the government expenditure with the increasing amount of fiat currencies in circulation.
The dollar devaluation is a phenomenon that does not require any hefty skills to find out. Any person who is curious to cross-check can run a simple Google search. In layman terms, 1 USD is now equal to just 0.000023 BTC. The close evaluation of the Satoshis or the smaller units of a Bitcoin indicates that the sharp decline of the USD value is a consequence of money printing.
The economists can testify that the USD has continued to keep devaluating over the last 50 years. According to the proponents of Bitcoin, this shows that Bitcoin is a good enough alternative for the green paperback. Despite the latest correction of the top coin, it seems that one Bitcoin is worth around $39K at present.
Bitcoin prices are recently performing in the reverse direction to the dismay of the bull investors. Since its latest ATH in November last year, the top coin has plunged by 60%. According to the data projections shared by CoinMarketCap, Bitcoin prices have improved by 3.91% during the last 24 hours. However, for the week thus far, Bitcoin prices are still in a deficit of 0.83%.
The investors are hoping that the top coin can make a break above the key resistance level of $46K before the end of the week. At present, the total market cap of the flagship crypto is valued at $726 billion. The dominance of Bitcoin for the total cryptocurrency market cap is currently at 41.3%.
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