According to Big Macs, the purchasing power of Bitcoin (BTC) is close to the highest level since the 2017 bull market, which is another sign of the rapid recovery of digital currencies.
The Bitcoin Global Purchasing Power Index (PPI), which measures the number of McDonald’s Big Mac burgers you can buy with 1 BTC, rose 0.2% to 6,341.26 on Wednesday. In other words, in the world, the entire Bitcoin can buy an average of 6,341.26 Big Macs.
In the United States, based on the current prices of both, you can get 3,274.91 Big Macs for 1 Bitcoin.
Data from Bitcoinppi.com
The last time Bitcoin’s purchasing power was so high was in the 2017 bull market, when the digital currency reached its highest level of nearly $20,000. On December 17, 2017, the price of 1 Bitcoin was equal to 6,358.5 Big Macs. At the lowest point of the 2019 bear market, Bitcoin PPI reached a low of 1,200.
Bitcoin PPI is based on the popular Big Mac Index, which was developed by The Economist in 1986 to measure purchasing power parity between currencies. Purchasing power is a useful measure of the quantity of goods and services that can be purchased by a monetary unit. Although the “Big Mac” index was a joke at first, it has become a major indicator of purchasing power and has been used in many academic studies.
Since the beginning of October, Bitcoin’s PPI has increased by more than 41%. According to TradingView data, during the same period, the price of Bitcoin increased by 39%. Since the beginning of the year, the price of Bitcoin has risen by 128%.
Bitcoin’s store of value function may be the most compelling use case. Facts have proved that digital currency is a reliable way to hedge inflation, this fact has been further confirmed by PPI.