{"id":458796,"date":"2022-06-07T08:28:06","date_gmt":"2022-06-07T05:28:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc\/"},"modified":"2022-06-07T08:28:06","modified_gmt":"2022-06-07T05:28:06","slug":"fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc\/","title":{"rendered":"# Fed forgets long-term dollar devaluation when pricing eggs in BTC"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f551b34642\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f551b34642\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc\/#%E2%80%9D_Fed_forgets_long-term_dollar_devaluation_when_pricing_eggs_in_BTC_%E2%80%9C\" >&#8221; Fed forgets long-term dollar devaluation when pricing eggs in BTC &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc\/#Crypto_Twitter_reacts\" >Crypto Twitter reacts<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Fed_forgets_long-term_dollar_devaluation_when_pricing_eggs_in_BTC_%E2%80%9C\"><\/span>&#8221; Fed forgets long-term dollar devaluation when pricing eggs in BTC &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>The St. Louis Federal Reserve stirred up a mix of amusement and curiosity from the crypto community on Tuesday, May 7, after publishing a post showing how the cost of eggs in Bitcoin (BTC) has fluctuated over the last 14-months compared to the U.S. dollar.\u00a0<\/p>\n<p>On June 6, the Fed research arm posted a blog <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fredblog.stlouisfed.org\/2022\/06\/buying-eggs-with-bitcoins\/\">post<\/a> titled \u201cBuying eggs with bitcoins &#8211; a look at currency-related price volatility.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The FRED Blog compares egg prices in U.S. dollars vs. bitcoins. Check out the post to see which prices are more stable <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Qfy9w8zgBk\">https:\/\/t.co\/Qfy9w8zgBk<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/qpFH4ny33S\">pic.twitter.com\/qpFH4ny33S<\/a><\/p>\n<p>\u2014 St. Louis Fed (@stlouisfed) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stlouisfed\/status\/1533917908740489221?ref_src=twsrc%5Etfw\">June 6, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nThe post initially features a graph showing the historical price of eggs in U.S. dollars for every month since January 2021, noting that the prices fluctuated between $1.47 and $2.52 over the 14-month period.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/952d2d4b-81c2-4ab9-ad19-b653ab2ce586.PNG\"><figcaption style=\"text-align: center;\">Source:\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fredblog.stlouisfed.org\/\">The FRED\u00ae Blog<\/a><\/figcaption><\/figure>\n<p>It then follows this up with a graph showing how Bitcoin has behaved in the same time period, noting that the price fluctuated\u00a0\u201cmuch more than it did for the U.S. dollar price.\u201d\u00a0<\/p>\n<p>The report did not stipulate whether the price of eggs had increased or the dollar had devalued, or both, as causes for the trend.<\/p>\n<blockquote><p>&#8220;What would the graph look like if we purchased that same carton of eggs with bitcoins instead of U.S. dollars?&#8221;<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/17a19214-1dc2-427d-adda-f1a5ae0d8f81.PNG\"><figcaption style=\"text-align: center;\">Source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fredblog.stlouisfed.org\/\">The FRED\u00ae Blog<\/a><\/figcaption><\/figure>\n<p>It also drew attention to Bitcoin\u2019s transaction fees, which it says can fall between $2 and $50.\u00a0<\/p>\n<p>\u201cPlus, you\u2019d need to add a bitcoin transaction fee, which has been about $2 lately, but which can spike above $50 on occasion. Hopefully, if you were making this purchase with bitcoin, you\u2019d put many many more eggs in your basket,\u201d it wrote.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_Twitter_reacts\"><\/span>Crypto Twitter reacts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The blog post ultimately drew ire from the crypto community on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, with many arguing that the fed was \u201ccherry-picking\u201d the time period to push the narrative of Bitcoin\u2019s instability, rather than \u201czooming out\u201d, which would instead show the massive devaluation of the U.S. dollar.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Fed wrote a post showing the price of eggs in USD and Bitcoin, comparing them over the last year, showing Bitcoin as more volatile and unpredictable.<\/p>\n<p>Only problem was they forgot to zoom out<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/WrCyaI4NP6\">https:\/\/t.co\/WrCyaI4NP6<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/rJVbedAs2z\">pic.twitter.com\/rJVbedAs2z<\/a><\/p>\n<p>\u2014 Nick Neuman (, ) (@Nneuman) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Nneuman\/status\/1533923935808520195?ref_src=twsrc%5Etfw\">June 6, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A Twitter user going by the name @MapleHodl pointed out the obvious by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MapleHodl\/status\/1533927193402822660\">stating<\/a> that the USD is continuously depreciating over time and Bitcoin is volatile short term, though <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>reciating, so \u201cstack yolks accordingly.\u201d\u00a0<\/p>\n<p>Other Twitter users said that for the Fed to even recognize Bitcoin as a unit of account as being a net positive sign for the king crypto.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Even the Fed is starting to price consumer goods in BTC. Bullish.<\/p>\n<p>Price of eggs going down. No inflation. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/hbeR38PWdx\">pic.twitter.com\/hbeR38PWdx<\/a><\/p>\n<p>\u2014 Joe Burnett ()\u00b3 (@IIICapital) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/IIICapital\/status\/1533922629907886081?ref_src=twsrc%5Etfw\">June 6, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p>\u201cNo matter how they put it. They used Bitcoin as a unit of account to compare. That\u2019s really big.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Fed money printer goes into reverse: What does it mean for crypto?<\/em><\/strong><\/p>\n<p>The recent post from the Federal Reserve Bank of St. Louis comes as a survey from Bloomberg\u2019s MLIV Pulse on June 6 revealed that crypto and tech stocks are \u201cacutely vulnerable\u201d to quantitative tightening plans by the U.S. central bank aimed at dampening inflation. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/c1dfd6df-587a-4d82-8583-f8ee6f593aaf.PNG\"><figcaption style=\"text-align: center;\">Source: bloomberg.com<\/figcaption><\/figure>\n<blockquote><p>\u201cThe historic shift is seen as a notable threat to tech equities and digital tokens &#8212; both risk-sensitive assets that soared in the Covid-era market mania before cratering in this year\u2019s cross-asset crash.\u201d<\/p><\/blockquote>\n<p>Since 2009, when Bitcoin first came into existence, the U.S. dollar has lost 26% of its value, tracking an average inflation rate of 2.32% per year since then, according to this <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.in2013dollars.com\/us\/inflation\/2009#:~:text=The%20U.S.%20dollar%20has%20lost%2026%25%20its%20value%20since%202009&amp;text=%24100%20in%202009%20is%20equivalent,cumulative%20price%20increase%20of%2034.76%25.\">inflation<\/a> calculator. <\/p>\n<p>On the other hand, one Bitcoin, which started at a value of $0.00 in 2009, is now worth $29,495 at the time of writing. <\/p>\n<p>The below chart shows the purchasing power of one U.S. dollar in today\u2019s terms. In 1913, one U.S. dollar could buy 30 Hershey\u2019s chocolate bars. In 2020, it can buy just one McDonald&#8217;s coffee. Additionally, the money supply (M2) in the U.S. has skyrocketed over the last two decades, increasing from 4.6 trillion in 2000 to $19.5 trillion in 2021.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/ef10d4bd-c2ef-4cf8-a439-1b0f364bacbf.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\">USD purchasing power over time &#8211; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/elements.visualcapitalist.com\/purchasing-power-of-the-u-s-dollar-over-time\/\">visualcapitalist.com<\/a><\/figcaption><\/figure>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Fed forgets long-term dollar devaluation when pricing eggs in BTC &#8220; The St. Louis Federal Reserve stirred up a mix of amusement and curiosity from the crypto community on Tuesday, May 7, after publishing a post showing how the cost of eggs in Bitcoin (BTC) has fluctuated over the last 14-months compared to the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":458797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvNzNhYWUwNGMtYTI2Zi00ZDk5LWFkZDktOWIwYzVlODlmODQ2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,76153,75164,87877,75541,70550],"class_list":["post-458796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-dollar","tag-price-analysis","tag-price-indexes","tag-volatility","tag-federal-reserve"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/458796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=458796"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/458796\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/458797"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=458796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=458796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=458796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}