Cash falls to 88 cents on the dollar but Bitcoin is up to $3.26 if you bought before the ‘crash’
Despite Bitcoin's recent 3% drop, holding it since early 2023 yields a $3.26 return, whereas the US dollar has lost significant purchasing power, effectively falling to about 88 cents.Summary
The article argues that both US cash and Bitcoin have lost value recently, but the loss in the dollar's purchasing power is often overlooked because it is gradual. By comparing the Bureau of Labor Statistics CPI-U index from February 2023 to December 2025 projections, and factoring in the DXY foreign exchange index drop, the real purchasing power of a 2023 dollar is estimated to be around 88.7 cents (or 92.5 cents using a broader trade-weighted index).
In contrast, Bitcoin, despite a recent 3% overnight slide, has appreciated significantly. If one had purchased BTC in early February 2023 (around $23,424), a $1 investment would now be worth approximately $3.26, representing a 226% gain.
The core message is that people often mistake the visible volatility of assets like Bitcoin for the 'volatility' of cash, which experiences an invisible, steady erosion of value through inflation and currency weakening. The author concludes that while cash feels calm, this calm comes at a cost, making Bitcoin's performance over the last three years a compelling counterpoint, even after recent pullbacks.
(Source：CryptoSlate)