Cryptocurrencies

How many Big Macs can you buy with 1 Bitcoin (BTC)? And why this figure is important! – Cryptocurrencies

cropped view of girl biting tasty hamburger

Bitcoin (BTC) and Big Mac: we learn every day. This “very fat” indicator makes it possible to assess the evolution of the purchasing power of Bitcoin.

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Reading between burger buns, the steaks and other ingredients of the Big Mac already seem to be tempting bitcoiner’s taste buds by giving them a taste of a BTC soon registering a new ATH.

McDo pushes Bitcoin to $ 20,000

How much Big Macs can we buy with 1 BTC ? The question may seem absurd, but it is nevertheless an important indicator for the price of BTC.

The purchasing power of Bitcointhe global Bitcoin Purchasing power index or PPI– measured in Big Mac, is calculated by the number of Big Macs that a person can buy with 1 BTC.

Bitcoin BTC PPI Big Mac

The PPI has increased 0.2% since November 11, 2020: 1 BTC allows today to buy 6,341.26 Big Macs.

To the United States, based on the current dollar and Bitcoin, 1 BTC allows you to have 3,274.91 Big Macs.

The last time this index was this high was during the 2017 bull run when the price of Bitcoin had reached 20,000 USD. December 17, 2017, 1 BTC was equivalent to 6,358.5 Big Macs.

BTC vs USD: the PPI as arbiter

The PPI of Bitcoin is based on Big Mac Index designed by magazine The Economist in 1986. This index was developed to measure the purchasing power parity between currencies.

Although the beginnings of Big Mac Index have been the subject of taunts and jokes, it has become an essential indicator of the economy and is referenced in several academic publications.

The PPI is up 41% since the beginning of October 2020 while Bitcoin records an increase of 128% since January 2020.

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Bitcoin has acquired a safe haven status. It has become a financial hedging instrument against the inflation of fiats, a fact which is reflected in the increase in PPI.

Bitcoin managed to break through the $ 16,000 mark. He is currently facing the existence of selling pressure in the area of ​​$ 16,400 – $ 16,500. Some analysts believe that there is little major resistance between the $ 16,000 and the $ 20,000. 2 important details to finish: this article was not sponsored by a fast food restaurant and, eat well to stay healthy.

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