Dollar Dwindles: 97% Loss Since 1913 Fuels Bitcoin Frenzy
The US dollar has lost significant purchasing power since its creation in 1913. According to the Bureau of Labor Statistics CPI-U, the dollar's value has decreased by about 97% over this period.
This means that $1 in 1913 is equivalent to around $33 to $34 today. The decline in the dollar's value can be attributed to various factors, including two world wars, the Great Inflation of the 1970s, and the 2021-23 spike.
The introduction of Bitcoin in 2009 was a response to this system. With its capped supply and declining issuance schedule, Bitcoin was designed as an alternative store of value.
Bitcoin's price has been highly volatile since its inception, with early buyers experiencing significant gains while later buyers faced drawdowns of up to 80% within single cycles. Despite this volatility, Bitcoin has outperformed cash and often gold over full market cycles.