Bitcoin (BTC<\/a>) is beating inflation better than the United States dollar, the U.S. Federal Reserve says \u2014 but unintentionally.<\/p>\n In a blog post first released<\/a> in June 2022 and since updated, the St. Louis Fed compares buying eggs with BTC compared to dollars \u2014 still with surprising results.<\/p>\n Bitcoin hodlers arguably have many better use cases for their BTC holdings than buying eggs, but that is the topic of a dedicated Fed blog post that attempts to demonstrate Bitcoin\u2019s uncompetitive buying power versus the dollar.<\/p>\n To do so, its anonymous author measured the price of a dozen eggs in BTC and U.S. dollars since January 2021.<\/p>\n \u201cThe price fluctuates quite a bit, between 2829 and 6086 [satoshis], which is much more than it did for the U.S. dollar price,\u201d the post concludes. <\/p>\n \u201cPlus, you\u2019d need to add a bitcoin transaction fee, which has been about $2 lately, but which can spike above $50 on occasion. Hopefully, if you were making this purchase with bitcoin, you\u2019d put many many more eggs in your basket.\u201d<\/p><\/blockquote>\n The charts included nonetheless show that since reaching a peak in both currencies in December 2022, the number of satoshis required to purchase the same dozen eggs has decreased more than the equivalent in U.S. dollars.<\/p>\n BTC hodlers require 70% fewer sats for the purchase as of August 2023, the latest month for which Fed data is available, versus 58% fewer dollars.<\/p>\n Compared with the start of 2021, egg cost is higher for both currencies \u2014 39% versus 73% for U.S. dollars and BTC, respectively. Here, however, the arbitrary timeframe comparison remains less than helpful<\/a>.<\/p>\n At the time, BTC\/USD traded at practically the same levels as at present, while the U.S. Consumer Price Index (CPI) year-on-year increase was under the Fed\u2019s own 2% target. With the latter now a thing of the past, only a longer-term synopsis provides real insight into Bitcoin\u2019s performance.<\/p>\n The price of eggs is a fraction of what it was during Bitcoin\u2019s last pre-halving year in 2019. \u201cEggflation\u201d seen in 2023 is a comparative blip on the landscape.<\/p>\n In dollar terms, the picture is one of solid price increases \u2014 the average in mid-2019, for example, was barely above $1.20 per dozen, or 40% less than now.<\/p>\n As Cointelegraph reported, attention is focusing on the greenback this month<\/a> as the U.S. Dollar Index balloons to near one-year highs.<\/p>\nBitcoin vs. U.S. dollar: \u201cEggflation\u201d has gone nowhere<\/h2>\n
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Recession looms large<\/h2>\n