Dollar lost a lot of value in the last decade, when 75% of all the dollars already created were played in the market.
Bitcoin’s quotation came back to break U$ 34 thousand this Tuesday (5). With this, the unit of the dollar is worth less satoshis in the market, which is the smallest unit of Bitcoin.
The digital currency’s upward movement began in 2020 and seems to have no end. This is because, after breaking the maximum of $ 20 thousand per Bitcoin, the price of the currency has skyrocketed in recent weeks.
The smallest unit of Bitcoin Bank called Satoshi in honor of the creator of the currency, is expected as the unit of account of the future by the community. With the rise of the currency, Bitcoin fans have even begun to value assets that can be acquired directly.
Dollar is worth less satoshis every year with Bitcoin’s rise
The dollar is the official currency of the United States, used as a reference today in most transfers of resources around the world. Thus, even Bitcoin has its main market quotation in relation to the US currency.
As a currency, the dollar was expected to be a reserve of value, unit of account and means of exchange. However, the reality is that the dollar loses strength every year in comparison to the Bitcoin.
According to the USDSAT website, an important milestone was seen on Tuesday, when the Bitcoin broke $34,000 again. The website, which shows the image of the deterioration of the Dollar against Bitcoin, recorded that each unit of USD is now worth less than 3 thousand satoshis.
This milestone, never seen in the history of Bitcoin, puts the digital currency in the spotlight. This is because, with a giant adoption by institutional investors, Bitcoin appreciated 17% in the first five days of 2021. In 2020, the appreciation exceeded 300% in relation to the dollar.
With a price of 2,900 satoshis per dollar, the community celebrated the brand achieved. Several personalities were already keeping an eye on the fall of the dollar, such as Jack Dorsey, the Twitter CEO. On January 2, when the dollar approached the drop below 3 thousand satoshis, he had already shared the „forecast“.
The Dollar’s fall is not the fault of the digital currencies, but may be the fault of the FED itself.
The falling dollar may have a culprit, although it does not look like it: the FED itself. This is because since Bitcoin was created in 2009, more than 75% of all dollars ever created have been printed in the world.
With more currency in the market, the tendency is for inflation to occur, that is, the Dollar has lost a lot of strength in the last 12 years. According to the USDSAT, 1 dollar was worth 334,448,161 satoshis ten years ago. In other words, the Dollar has already lost 99% in value in relation to Bitcoin in the last decade.
In relation to 2020 alone, the Dollar, which was worth 13,594 satoshis, has lost 77% in value. Thus, it is clear that the world’s main fiduciary currency cannot maintain its reserve value over the years.
As a reserve of value and protection against inflation, Bitcoin gains strength and this Tuesday can go down in history by recording this moment. This is even the main motivation for the recent institutional adoption of digital currency.