{"id":4743,"date":"2022-06-07T05:38:09","date_gmt":"2022-06-07T05:38:09","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=4743"},"modified":"2022-06-07T05:38:09","modified_gmt":"2022-06-07T05:38:09","slug":"fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4743","title":{"rendered":"Fed forgets long-term dollar devaluation when pricing eggs in BTC"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>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 post titled \u201cBuying eggs with bitcoins &#8211; a look at currency-related price volatility.\u201d<\/p>\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 https:\/\/t.co\/Qfy9w8zgBk pic.twitter.com\/qpFH4ny33S<\/p>\n<p>\u2014 St. Louis Fed (@stlouisfed) June 6, 2022<\/p>\n<p>The 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<p>Source:\u00a0The FRED\u00ae Blog<\/p>\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<p>&#8220;What would the graph look like if we purchased that same carton of eggs with bitcoins instead of U.S. dollars?&#8221;Source: The FRED\u00ae Blog<\/p>\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>Crypto Twitter reacts<\/h3>\n<p>The blog post ultimately drew ire from the crypto community on Twitter, 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<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 outhttps:\/\/t.co\/WrCyaI4NP6 pic.twitter.com\/rJVbedAs2z<\/p>\n<p>\u2014 Nick Neuman (, ) (@Nneuman) June 6, 2022<\/p>\n<p>A Twitter user going by the name @MapleHodl pointed out the obvious by stating that the USD is continuously depreciating over time and Bitcoin is volatile short term, though appreciating, 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<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. pic.twitter.com\/hbeR38PWdx<\/p>\n<p>\u2014 Joe Burnett ()\u00b3 (@IIICapital) June 6, 2022<\/p>\n<p>\u201cNo matter how they put it. They used Bitcoin as a unit of account to compare. That\u2019s really big.\u201d<\/p>\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<p>Source: bloomberg.com\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>\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 inflation 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<p>USD purchasing power over time &#8211; visualcapitalist.com<script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/fed-forgets-long-term-dollar-devaluation-when-pricing-eggs-in-btc\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 On June 6, the Fed research arm posted a blog [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-4743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4743"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4743\/revisions"}],"predecessor-version":[{"id":4745,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4743\/revisions\/4745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4744"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}