Topic: You think bitcoin is volatile? Look at a price of a Big Mac. - page 2. (Read 3889 times)
GAD DAMNIT! I KNEW I SHOULD HAVE BOUGHT BIG MACS IN 2004
Food prices are also going up due to climate change and 7 billion people all wanting to have steaks.
Not saying the dollar is good, but you need to average over a few different types of goods.
Not saying the dollar is good, but you need to average over a few different types of goods.
Is the US dollar really a stable currency? Does it always buy the same amount? Inflation really can't be that bad, can it? Let’s look at the price of a Big Mac in the U.S. for years 2004 – 2012 according The Economist:
2004: $2.90
2005: $3.06
2006: $3.10
2007: $3.22
2008: $3.41
2009: $3.57
2010: $3.73
2011: $4.07
2012: $4.45
Calculate that into percentage increases:
2005: 5.5%
2006: 1.3%
2007: 3.9%
2008: 5.9%
2009: 4.7%
2010: 4.5%
2011: 9.1%
2012: 9.3%
How is that for a stable currency? Inflation according to the government is supposed to be only 3% or lower! Bitcoin only performs better in purchasing power at this scale. It may be volatile but it isn't has negatively volatile as the US dollar.
References:
http://www.economist.com/content/big-mac-index
http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx
2004: $2.90
2005: $3.06
2006: $3.10
2007: $3.22
2008: $3.41
2009: $3.57
2010: $3.73
2011: $4.07
2012: $4.45
Calculate that into percentage increases:
2005: 5.5%
2006: 1.3%
2007: 3.9%
2008: 5.9%
2009: 4.7%
2010: 4.5%
2011: 9.1%
2012: 9.3%
How is that for a stable currency? Inflation according to the government is supposed to be only 3% or lower! Bitcoin only performs better in purchasing power at this scale. It may be volatile but it isn't has negatively volatile as the US dollar.
References:
http://www.economist.com/content/big-mac-index
http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx
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