The Bitcoin (BTC) price soared to nearly $ 20,000 in 2017 before losing more than 80% of the value of the multi-year bear market. Since then, the asset’s value has not come close to such high prices – yet. At the time of release, the first cryptocurrency is in circulation again a few percentage points from the previous milestone.

While crossing $ 20,000 may soon become a threshold of psychological significance, Bitcoin will not actually reach a permanent all-time high in terms of purchasing power at the time due to inflation.

“If you buy Bitcoin # at the top in December 2017, you will not regain your purchasing power until we reach 21.24K,” Voice Broadcast Officer Vlad Kostia said in a tweet Tuesday. Kostya used $ 20,000 as the highest bitcoin, and put numbers and dates into an inflation calculator to determine the most accurate numbers.

US dollar holders lose on average approximately. 2% purchasing power per year due to inflation. Official data show that inflation was 2.13% in 2017, 2.49% in 2018, 1.76% in 2019, and 1.86% in 2020.

Bitcoin’s most recent highs ever varied across exchanges. The Coinbase Price Index shows that Bitcoin reached an all-time high of $ 1,981.99 on December 16, 2017. Using this figure, Bitcoin should reach $ 21,131.02 to get the same purchasing power again as it was in 2017, according to an inflation calculator.

Other previous Bitcoin levels are also showing inflation, but it is not particularly noticeable. The $ 1,200 Bitcoin level in 2013 is about $ 1,341 in today’s dollars.

However, with all the US monetary pressure in 2020, the future will show whether this year will ultimately have a stronger inflationary effect on the US dollar than it is currently reported at less than 2%.

Source: CoinTelegraph