Bitcoin Hits Historic High? It's Actually Just the Fiat Currency Crazy Devaluation!
On May 21, 2025, the price of Bitcoin surpassed $109,700, breaking the record of $108,786 set at the beginning of the year, seemingly a promising rise. However, the reality is far from that simple.
The nominal increase is less than 1%, but during the same period, the inflation rate of the dollar was about 0.77%, and the money supply continued to expand. In other words, the actual purchasing power of Bitcoin has hardly increased; it's just that the dollar keeps depreciating.
After adjusting for inflation, the price increase of Bitcoin is only about 0.08%, and in essence, the so-called 'historic high' is merely a reflection of fiat currency losing its value.
This reveals a core truth: Bitcoin is not surging dramatically, but rather maintaining its value, illustrating the ongoing weakness of fiat currency and the erosion of purchasing power due to inflation.
We need to change the way we view Bitcoin and stop measuring its performance with a continuously depreciating fiat currency. Bitcoin symbolizes stable assets, not volatile investment products like stocks.
What truly deserves attention is not the superficial rise and fall of price numbers, but the real changes in purchasing power behind them. Bitcoin exposes the fragility of the fiat currency system, rather than simply a surge.
Stop blindly celebrating the so-called 'new highs' and start deeply examining the hidden dangers of the monetary system in order to understand this digital asset revolution more wisely.
