Ever wondered why a burger or a phone costs way less in some countries than others? 🤔 That’s not random — it’s called Purchasing Power Parity (PPP), and it says a lot about currency strength, global economics, and even crypto use.
🔍 Quick Breakdown:
PPP compares the cost of a standard “basket of goods” in different countries — giving us a clearer view of what money is really worth across borders 💸.
Here’s what stood out to me from a great article I read on Binance Academy:
✅ Adjusts GDP to reflect true living standards
✅ Helps predict long-term currency trends
✅ Exposes currency manipulation
✅ Shows why people in inflation-hit countries turn to crypto & stablecoins
🌍 Real-world example? The Big Mac Index 🍔 shows how the price of a burger in different countries reflects the purchasing power of local currencies. Simple but powerful!
🧠 PPP isn’t just for economists — it’s useful if you:
Care about global prices
Are tracking crypto trends
Want to know how far your salary goes internationally
📚 Search for "PPP" on Binance Academy if you're curious — it's a short read but packed with insight.