The last decade has been for many people in the world is not easy – in many countries the cost of living has risen dramatically, without the wages Board. In America. It seems, however, that the decreased purchasing power of the US dollar (USD) would be completely offset if the wages had been paid in Bitcoin – the Cryptocurrency that has been upgraded for 2015 to more than 2,200 %.
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Time for Bitcoin
Since the average American earns, according to MarketWatch, approximately 28,29 dollars per hour, it would take almost 257 hours to buy a single Bitcoin (BTC) to the current value (approx. 7.315 dollars). In comparison, someone who earned the state minimum wage of $7.25 per hour would have to work a little more than 1,000 hours, to a single buy Bitcoin.
As one of the most popular crypto-currencies with limited supply of Bitcoin today is understandably quite short. Less popular crypto-currencies with a lower price, of course, easier to buy, because the average American earned enough to buy a single Ether (ETH) – for this, he would have to work only 4.67 hours. While a single XRP tokens can be earned in only 24.4 seconds.
We look back, we can get a better understanding of how fast is Bitcoin and some other crypto currencies have obtained, while the US Dollar has lost in the last few years, in purchasing power.
For example, the minimum wage of the US government was set in the year 2015 to 7.25 $/hour, while Bitcoin opened the year with 315$. At these rates, even a worker with a minimum wage could have a whole Bitcoin in only 43 hours to earn, while the average hourly wage of 24.75 $ in the year 2015 means that you have to work had for 1 BTC less than 13 hours.
Compared to 2015, the majority of Americans would have to work now at least 23x longer to earn a single Bitcoin.
Fiat drops, Bitcoin will rise
Unfortunately, the cost of living in the United States are increased in the same period of time dramatically, although the minimum wage has not been increased for more than a decade. This makes it for people with a lower income is difficult to save if not impossible, to invest.
In the same period, the average sales price for housing has risen by 50%, while the cost for most of the food and purchases have risen by more than 20%. In addition, the students must now expect 25% more in tuition fees, and the average rental costs have increased since 2009 by more than 10%.
Because the average American earned in the year 2019 only 4% more than in 2009, it is quite clear that the cost of living is fast on the wage growth. But why? Now, part of the reason can be attributed to the fact that the US Dollar is an inflationary currency. This means that the purchasing power decreases every dollar in every year when new Bills are in circulation.
Conversely, Bitcoin has improved as a deflationary unit of Value, its purchasing power in the course of its life time drastically. Therefore, anyone who has drawn his salary in Bitcoin instead of USD would be now in a far better Position.