Bitcoin value and inflation impact

Ever wonder why so many people miss the point that Bitcoin is often priced in dollars, so inflation really skews our view of its value? A Bitcoin that was worth $68K back in 2021 might actually be less valuable than a Bitcoin priced at $77K today, but a lot of folks just don’t think about that. This is true for other assets too. We get caught up in the face value and ignore the real worth of things. If we actually factor in inflation, the Bitcoin price today would look lower than what we see on the surface. This isn’t to say Bitcoin is failing. It just means that the highest price we see isn’t the same as the real highest price adjusted for inflation. I’m curious to hear your thoughts on this. For anyone interested, there's a site where you can check inflation for different currencies.

I agree with you, but "real value" is a bit deceptive. In economics, all value is subjective and relative. For example, I eat steak every day, and if the price of steak in sats declines overtime, then my purchasing power goes up, even though bitcoin might have declined in value relative to gold in the same period. Still, my purchasing power has gone up.  Value is relative. Is your dream house declining in bitcoin terms? Then your money is resistant to inflation. In general, though, nearly everything is declining in bitcoin terms overtime.

I’ll prefer to measure or think my bitcoin price in term of satoshi instead of  the inflating dollar. Because if you’re holding bitcoin, inflation in dollar is almost something you can’t avoid in it nominal price, but it’s not really having that direct impact on it value or in it’s purchasing power I guess. I don’t know if other are thinking in the direction which I’m looking at the situation.

When we see Bitcoin price, we mostly see its price as it is and don't take inflation rate of fiat currency into account. If Bitcoin price in 2026 is higher than in 2022, four years ago, it's good. If we want to something better, or nearly absolute to measure Bitcoin price growth year by year, taking inflation rate into account is very important. With most people, it's too complicated and even not too necessary, so if they get profit, good ROI, it's enough for their investment and their wealth. Basically Bitcoin ROI over years is better than what people get from bank savings.

This is the reason why when bitcoiniers measure bitcoin they simply tell you that one bitcoin is equivalent to one bitcoin (1 BTC =1 BTC) and this the only correct evaluation of a bitcoin any currency it’s related to is actually doesn’t measures its well although we can make a case for gold as better currency to evaluate it with. This inflation of the fiat currency has actually been discussed before such that most people are even sure that some pumps we see in bitcoin pair with usd (BTCUSD) are actually just the Dollar actually falling not really the bitcoin then pumping. I could remember when bitcoin first attain the six figure it was actually the USD that was facing devaluation then than bitcoin actually increasing in price because the Euro and other top currencies then weren’t pumping. This inflation is the sole reason why one needs to have their savings in assets like bitcoin to get an hedge against the inflation

Do you mean if we are not to measure and account for inflation biitcoin price would be lower than its price that we see today. Let us say that dollar inflation is excluded, bitcoin that is $77000 today supposed to be $75000 if there is not inflation. It is inflation that makes the price to be slightly higher than it should be, but bitcoin increase more from its demand and limited supply.

If we think this way by any chance when Bitcoin price keep stable at $100k for one year it loses its value by 3% which is $3k So Bitcoin ATH price will also change based on how many years it take to reach. Then to The actual ATH = nominal ATH x {1 + (inflation rate/100)}Year So the real ATH will be 133,758.27+  if it takes 2 year with inflation rate 3%

True the purchasing power gradually undergoes inflation and I think this is actually what we bitcoin enthusiast needs. Because reasons been said, as dollars keeps losing value over time even with the artificial current price looking high it's best to say bitcoin price value will eventually grow faster than inflation given a specific period ....... ​That's why to me I believe bitcoin is an alternative with significant value  For that, it's easy to say as time goes bitcoin will eventually exempt from dollar's inflation completely......all this are just a matter of time, evolution, and gradual process, that's all....

There is a short explanation that I saw about Bitcoin prices and inflation, where we know about the differences, as outlined. In short, I can draw one conclusion, Bitcoin can be positioned as a hedge just like gold, where gold is also measured in dollars, but it still has a correlation in maintaining a hedge against fiat/dollar inflation in the long term, as wellinfluence on interest rates.

It might be a matter of perspective. Because we are viewing Bitcoin through the lens of a fiat currency, when the fiat starts inflating and becoming more and more worthless, it makes Bitcoin worthless until it catches up by going up in price. This price action is not instantaneous so Bitcoin might be undervalued during that time. But in my experience, Bitcoin has always beaten the fiat inflation. When fiat goes down, Bitcoin goes up. When the scam called fiat has reached it's inevitable end, Bitcoin's potential value will realize.

I completely agree with you! Indeed, Bitcoin is currently worth about the same as it was in 2021 (5 years ago!). 🙋 The dollar has depreciated significantly in 5 years. Note that in 2021, Michael Saylor and BlackRock hadn't yet accumulated Bitcoin. And that didn't stop the price from reaching $69,000. Also, there were no spot Bitcoin ETFs (large institutional buyers of Bitcoin) in 2021. Therefore, from all this, I conclude that Bitcoin is now catastrophically oversold! After all, fiat currencies will continue to depreciate. It's absolutely inevitable... Just look at the size of the US government debt... And also at 30-year US Treasury bonds yielding 5%. I believe the price of Bitcoin will fluctuate between $200,000 and $500,000 over the next five years. However, I don't rule out the possibility of seeing the price reach $1,000,000 or higher. I believe there are very objective reasons for this.

At least you have 77k in BTC right now, if you had 68k the purchasing power would already be much lower compared with 77k. So this difference is not unique and it does not go unnoticed. I have heard about this comparison around the 2024 halving when the ATH was 69k and a lot of members were saying the new ATH is going to be at least double of it because inflation has cut the purchasing power almost by 50 percent so if you had 100 dollars at that time it would have the purchasing power of 50 dollars by the 2024 halving. But due to BTC that amount could become 200 dollars and your purchasing power would not be affected in fact the inflation rate is not as high in reality as it looks But the volatility of BTC is higher and that is what benefits the holders and that is how they even make profit after removing inflation effects. Thanks for sharing the site though it is helpful for those who were not aware of this point of view before

Bitcoin is deflatory asset no matter if inflation goes higher or not Bitcoin will continue to gain value. I know if we count the same in US dollars then things might be a little bit different because US dollar losses its value overtime because of inflation but that's not because of Bitcoin. Bitcoin is still more than $77k in value and that matter more than anything else I believe.

The price of Bitcoin is always on a slope which slides on an unbalanced form that is the price is floating up and down every day, week, month and year. It is never placed on a balance position like today in this May, Bitcoin is trading around $75.400 or $75.700 per token. This is  down from it's late 2025 highs, heavily influenced by institutional Exchange Trade Fund (ETF) outflows and global geopolitical risk. The relationship between Bitcoin and inflation is a key focus for investors, divided into a few distinct areas: A)Long Term Inflation Hedge: Bitcoin is considered by many investors to be a long-term safeguard against fiat currency devaluation- because it have a hard capped supply of 21 million coins and an issuance rate that halves every four years, it theoretically resisted the systemic inflation caused by unconstrained central Bank money printing. In Short-term Volatility: Bitcoin always act as a risk-on asset rather than a stable inflation hedge. But during period of unexpectedly high inflation or heightened macroeconomics uncertainty, Bitcoin Price often falls as institutional and retail investors pull liquidity out of riskier assets and move towards cash or bonds.

Most people are not worried about the price of Bitcoin going up and down, but they are worried about the price of the US dollar going down because it also reduces the value of millions of dollars, which cuts into profits. Bitcoin will return to its original state, but it may take a long time for the dollar to return to it and other things also take time. Since the Strait of Hormuz was asked to trade with the Chinese currency, the value of the dollar has been decreasing and inflation has also increased since it is used in everything. Bitcoin does not care whether it is decreasing its value or increasing, but the other currency with which Bitcoin is bought matters more.

I disagree with this analogy. The reason why Bitcoin is priced against the USD is to know the actual value of the two assets paired together. This is why a distinct price is established. However, where you are making a mistake is that, that price didn't just come up, but has undergone every possible economic factors (micro and macro) before arriving at a value. In a simpler term, BTC/USD didn't rise or fall only because people buy or sell it directly, but the inflation in the US, for example, contributes to that.

Where inflation can be of the more effect is in the fact that, it can affect just how much an investor would want to invest in the currency. That’s because, the rise in the price of commodities would in many ways affect just how much you are allowed r spare for investments since there would always be needs and wants that would need satisfying, leaving you with very little choice on how to go about investing.

Your statement is correct, and this is because most people link the price of Bitcoin to the dollar, regardless of the inflation affecting the dollar. There is an old conviction among most people that the dollar is the primary standard of value, which is of course a false belief but people have become accustomed to it. Here in my country for example, people who have no experience in economics prefer the dollar to gold and do not know about Bitcoin at all. Therefore due to the inflated value of the local currency, they convert it to dollars, thinking that this is the best way to preserve its value unaware that the dollar is also losing its value.

That is unfortunately true but considering the real value instead of nominal value is adding more confusion so the market never really talks about it but we know the money 5 years ago worth more than the money of today because the high rate of inflation. Regardless, every data seem to disregard real value based on inflation when calculating return of investment and even multi year growth.

Even that website is too conservative, as it uses the official CPI figures as a measure of inflation but I get the idea. This. It’s not just about the value. Real inflation—if we don’t just accept the government’s manipulated CPI—is also difficult to calculate. One could use the increase in the money supply, but there are those who dispute that too. Although I am more inclined to focus on the increase in the money supply—perhaps with some adjustment factor—rather than the CPI.