The last time Bitcoin's purchasing power was so high during the boom in 2017, when the digital currency peaked at nearly $20,000. December 17, 2017, 1 Bitcoin was worth 6,358.5 Big Mac.
The Bitcoin PPI is based on the famous Big Mac index, which was developed by The Economist in 1986 as a means of measuring purchasing power parity in different currencies. Purchasing power is a useful way of measuring how many goods and services a single unit of money can buy. Although the Big Mac index began as something of a joke, it has become the leading indicator of purchasing power and has been used in dozens of academic studies.
Bitcoin's PPI has increased by more than 41% since early October. During the same period, the price of Bitcoin increased by 39%, according to TradingView data. Since the beginning of the year the Bitcoin price has increased by 128%.
The characteristics of Bitcoin's value warehouse is probably the most convincing case of its use. The digital currency has become a credible hedge against inflation - a fact that is further emphasized by PPI.
