Bitcoin and the Big Mac Index? A wild concept, right? But let’s break it down. Back in 2015, one Bitcoin could snag you a measly 51 Big Macs. Fast forward to 2024, and that same Bitcoin could buy about 10,500 of those greasy delights. That’s a staggering 20,488% increase in purchasing power! Talk about a food frenzy.
It’s clear that Bitcoin’s soaring value is outpacing the inflation of traditional currencies like the U.S. dollar, which is impressive considering how sneaky inflation can be. Inflation rates are stable and low at 3.0% per year, but Bitcoin’s performance has truly been extraordinary. Over 50% of money may evaporate in 23 years at current rate adds urgency to finding alternative stores of value like Bitcoin. Additionally, the bullish trends observed in Bitcoin’s price indicate a growing interest among investors.
The Big Mac Index isn’t just about burgers; it’s a quirky tool for comparing purchasing power across currencies. It measures how many Big Macs you can buy in different countries, reflecting the strength of those currencies. For instance, Switzerland’s implied exchange rate shows their francs are overvalued compared to the dollar.
But when you throw Bitcoin into the mix, it really flips the script. The value of a Big Mac in Bitcoin has plummeted by about 99% between 2015 and 2025. In Bitcoin terms, the Big Mac is practically free—while the dollar price has risen around 33%.
Now, Bitcoin is a tempting alternative for adjusting inflation beyond those boring CPI numbers. It can help reveal what asset prices are really doing, especially when they seem to rise but are actually losing value.
However, hold your horses! Bitcoin’s volatility is a wild card. One day it’s up, the next it’s down. Using it as a stable currency comparison? Good luck with that. Plus, not everyone is ready to trade their cash for crypto when paying for a burger.
