The price of the world's largest cryptocurrency increased by almost 170,000 percent in the past seven years, which caused the United States dollar to lose nearly 99.99 percent of its value against BTC. The trend is surprisingly similar to the behavior of Germany's Papermark during 1920s hyperinflation.
Bitcoin's price trajectory looks a lot like the old German gold mark.
Many analysts have tried comparing the volatility of crypto assets, especially Bitcoin, to those of traditional markets such as stocks and bonds but never managed to find a correlation that would explain the coins' trajectory.
A recently published data chart found incredible similarities between Bitcoin and the long-abandoned currency of the Weimar Republic-the Papiermark.
According to planB, a cryptocurrency analyst, the US dollar's price against BTC has decreased by 99.99 percent since 2011.
The chart compared the relationship between Bitcoin and USD with the relationship between Germany's Papiermark and its predecessor, the Goldmark.
Introduced in the German Empire in 1873, the Goldmark was on a gold standard until it was replaced with the Papiermark in 1914.$USD lost 99.99% of it's value against #bitcoin 2011-2019 pic.
USD value against BTC follows the trajectory of the Papiermark.
PlanB's chart showed that Bitcoin's performance against the USD in the past eight years looks incredibly similar to the last five years of the Papiermark's devaluation.
While many experts are divided on whether or not Bitcoin could replace gold as the ultimate store of value, cryptocurrencies have seen increased use in countries battling with hyperinflation.
US dollar has lost 99.99% of its value against Bitcoin
gepubliceerd op May 29, 2019
by Cryptoslate | gepubliceerd op Coinage
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