Bitcoin hodlers have better use cases for their BTC holdings than buying eggs, according to a recent blog post by the Federal Reserve [cb1d2396]. The post compares the buying power of Bitcoin versus the US dollar by measuring the price of a dozen eggs in BTC and USD since January 2021.
The analysis reveals that while the price of eggs in BTC fluctuates more than in USD and requires additional transaction fees, the number of satoshis required to purchase a dozen eggs has actually decreased more than the equivalent USD since December 2022. As of August 2023, BTC hodlers require 70% fewer satoshis for the purchase compared to 58% less USD [cb1d2396].
However, it is important to note that the cost of eggs has increased for both currencies compared to the start of 2021. Additionally, the price of eggs in dollar terms has significantly risen since mid-2019. Analysts suggest that actions by foreign states and warning signs in the US economy may seek to redress the imbalance [cb1d2396].
This analysis sheds light on the ongoing debate surrounding the buying power of Bitcoin compared to traditional fiat currencies. While Bitcoin may offer advantages in terms of transaction fees and decreasing satoshi requirements for certain goods, it is still subject to market fluctuations and external factors that can impact its value [cb1d2396].