As measured by Big Macs, Bitcoin’s purchasing power (BTC) is nearing its highest level since the 2017 bull marketThis is another indicator of the rapid appreciation of the digital currency.
The Bitcoin Global Purchasing Power Index (PPI), which measures how many McDonald’s Big Mac hamburgers you can buy with 1 BTC, rose 0.2% to 6,341.26 on Wednesday. In other words, On average, a full bitcoin can buy you 6,341.26 Big Macs.
In the US, based on current prices for both, you can get 3,274.91 Big Macs for 1 bitcoin.
The last time Bitcoin’s purchasing power was this high was during the 2017 bull market when the digital currency peaked at nearly $ 20,000. On December 17, 2017, 1 bitcoin was worth 6,358.5 Big Macs. In the lows of the 2019 bear market, Bitcoin’s PPI hit the low of 1200.
Bitcoin’s PPI is based on the famous Big Mac Index, which was developed by The Economist in 1986 to measure purchasing power parity between currencies.. Purchasing power is a useful way of measuring how many goods and services a unit of money can buy. Although the Big Mac Index started out as a hoax, it has become a leading indicator of purchasing power and has been used in dozens of academic studies.
Bitcoin’s PPI has increased over 41% since the beginning of October. Over the same period, the price of Bitcoin has increased 39%, according to TradingView. So far this year, the price of Bitcoin has increased 128%.
Bitcoin’s store of value is possibly the most compelling use case. The digital currency has proven to be a reliable inflation hedge, which the PPI further underlines.