3.4 C
Manchester
April 13, 2021
Image default
Bitcoin

Fiat food? The Bitcoin Big Mac index drops below 10k satoshis- Webitcoin

Gold can purchase less and less Bitcoin (BTC) this year, but another measure of the strength of the cryptocurrency has just reached a historic milestone.

Data from the online analytics service Ecoinometrics show that on March 17, the so-called Big Sats Index saw a McDonald’s Big Mac in the United States cost less than 10,000 satoshis for the first time.

Bitcoin vs. fiat: hard to digest

The Big Sats Index measures how much a Big Mac costs based on the famous Big Mac Index from The Economist. Born in 1986, the latter originally appeared as a tool to measure the strength of different fiat currencies.

The Bitcoin equivalent is a kind of ironic commentary on both the decree and the food.

As Saifedean Ammous argues in “The Bitcoin Standard”, both the trillion dollar forex market and the rise of the nutritionally controversial hamburger are the results of the abandonment of the gold standard and the adoption of unlimited money, and the resulting desire for gratification to the detriment of long-term prosperity.

However, the numbers speak for themselves. For about $ 60,000, an entire Bitcoin buys an impressive 10,402 Big Macs, says Ecoinometrics, while a single hamburger consumes a Bitcoiner of just 9,614 satoshis.

By comparison, the March 2020 asset crash briefly brought the cost of a Big Mac to more than 100,000 satoshis. The last time the price was 1 million satoshis, however, was in mid-2016.

As Cointelegraph reported subsequently, November 2020 was a time when 1 BTC bought just over 3,000 hamburgers.

Big Sats index chart. Source: Ecoinometrics / Twitter

Race to the bottom

Big Sats is just one example that captures the central argument of Bitcoin proponents that fiat money tends to zero compared to Bitcoin – because the fiat has no limits on its supply.

Last year, with the coronavirus epidemic, this thesis originated, as governments expand the money supply of their national currencies faster than at any time outside hyperinflation.

Candlestick chart
1-day MSTR / BTC candlestick chart. Source: Preston Pysh / Twitter

A refreshing counterpoint to the trend that surfaced this week is the shares of MicroStrategy (MSTR), which gained rapidly in the second half of last year, after CEO Michael Saylor began converting the company’s balance sheet into Bitcoin.

Circled on social media by Preston Pysh, host of the Investor’s Podcast, it shows a peak for MSTR last month before Bitcoin’s continued rise coincided with a broader sale among technology stocks, including those with exposure to Bitcoin.

Source: Cointelegraph

Related posts

– Bitcoin, cryptocurrencies and blockchain technology.

Aparnna Hajirnis

Former Microsoft employee sentenced to 9 years in prison –

Aparnna Hajirnis

The President of UOKiK, Tomasz Chróstny, initiated proceedings against people promoting scams –

Aparnna Hajirnis

Leave a Comment