Dollar Devaluation: How Bitcoin Became a Lifeline for Savers

The US dollar's purchasing power has plummeted by about 97% since 1913 when the Federal Reserve was created, according to the Bureau of Labor Statistics CPI-U. This means that a $1 bill in 1913 is equivalent to around $33 to $34 today.

This massive devaluation occurred over two world wars, the Great Inflation of the 1970s, and the 2021-23 spike. The dollar's value has been eroded by inflation, which quietly taxed cash that was left idle over the years.

Bitcoin, on the other hand, was designed as a response to this system. It has a capped supply of 21 million coins with a declining issuance schedule. While it didn't exist in 1913, its record since 2009 has been marked by extreme fluctuations in both directions.

Early Bitcoin buyers saw their purchasing power surge, but later buyers experienced drawdowns of 50% to 80% within single cycles. As of early September 2026, the price of BTC is around $79,852, far below its October 2025 peak of $126,080.