US Dollar vs Bitcoin

Since Bitcoin has recently been on a tear, let’s talk about the dollar versus Bitcoin. During COVID, we printed an unprecedented amount of money to help stimulate the economy. As more money is printed, the supply of dollars in circulation increases, diluting the value of each individual dollar. This means that it takes more dollars to purchase the same goods and services, leading to higher prices and reduced buying power for consumers. Over time, this decrease in value erodes the savings and wealth of individuals. 

Bitcoin, on the other hand, attempts to address the issue of decreasing purchasing power through its decentralized nature. As a decentralized digital currency, Bitcoin is not subject to the same control and manipulation by governments or central banks. Its supply is fixed, with a predetermined maximum limit of 21 million bitcoins that can ever exist. This scarcity ensures that the value of Bitcoin is not subject to arbitrary increases or decreases based on printing more currency.

Furthermore, Bitcoin’s decentralized nature means that it is not controlled by any single entity or institution, reducing the risk of government interference or manipulation. This gives users a stronger sense of confidence and trust in the stability and value of their holdings. While Bitcoin’s value can still fluctuate due to market dynamics and speculation, its decentralized nature and limited supply make it a potential store of value and a hedge against the decreasing purchasing power of fiat currencies like the American dollar.

-GC