Fewer and fewer Bitcoins (BTC) can buy gold this year, but another indicator of the strength of the cryptocurrency has just reached a historic stage.
Data from the electronic analysis service Ecoinometrics shows that on March 17, according to the so-called Big Sats Index, for the first time in US history, the value of a McDonald’s Big Mac was less than 10,000 satoshis.
Bitcoin vs Fiat: Hard to digest
The Big Mac Index shows the value of a Big Mac, based on the popular Big Mac Index from The Economist. The latter was born in 1986 and was originally used as a tool to measure the strength of various fiat currencies.
The Bitcoin equivalent is something of a silly commentary on both fiat currency and food.
As Saifedin Ammos argues in the Bitcoin Standard, both the $ 1 trillion foreign exchange market and the nutritionally controversial emergence of burgers are the result of abandoning the gold standard and accepting money without restricting supply, and the consequent desire for instant gratification through Prosperity is a term. .
Yet the sermons speak for themselves. For around $ 60,000, up to 10,402 Macs can be bought for whole Bitcoin, while a single burger will cost Bitcoin just 9614 Satoshi, according to Ecoinometrics.
In comparison, in March 2020, due to the asset crash, the value of the Big Mac briefly exceeded 100,000 satoshi. But the last time the price was 1 million satoshi was in mid-2016.
As Cointelegraph also reported, November 2020 was the time just over 3,000 burgers were purchased for 1 BTC.
A race to the bottom
Big Sats is just one example that reflects the main argument of Bitcoin’s supporters that fiat currency eventually goes to zero compared to Bitcoin because Fiat has no restrictions on supply.
Last year, thanks to the coronavirus epidemic, this message was confirmed, as governments increased the money supply of their national currencies faster than ever outside of hyperinflation.
A renewed counterweight to this week’s trend is MicroStrategy (MSTR), which rallied sharply in the second half of last year after CEO Michael Saylor began converting the company’s balance sheet into bitcoin.
Shared on social media by Preston Write, host of The Investor’s Podcast, it shows the peak in MSTR last month, before Bitcoin’s continued rally coincides with a further drop in tech stocks, including those affected by Bitcoin.