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 Bitcoin is an unlikely choice for egg purchasing, but the amount needed per dozen speaks for itself.
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<div class="cointelegraph">
 <p>Bitcoin (BTC) is beating inflation better than the U.S. dollar, the Federal Reserve says — unintentionally.</p>
 <p>In a blog post first released in June 2022 and since updated, the St. Louis Fed compares buying eggs with BTC compared to USD — still with surprising results.</p>
 <h2 id="bitcoin-vs-us-dollar-eggflation-has-gone-nowhere">Bitcoin vs. US dollar: "Eggflation" has gone nowhere</h2>
 <p>Bitcoin hodlers arguably have many better use cases for their BTC holdings than buying eggs, but that is the topic of a dedicated Fed blog post which attempts to demonstrate Bitcoin’s uncompetitive buying power <a rel="noopener noreferrer nofollow" title="versus" href="https://thebittimes.com/tag/versus.html">versus</a> the <a rel="noopener noreferrer nofollow" title="dollar" href="https://thebittimes.com/tag/dollar.html">dollar</a>.</p>
 <p>To do so, its anonymous author measured the price of a dozen eggs in BTC, measured in satoshis, and USD since January 2021.</p>
 <p>“The price fluctuates quite a bit, between 2829 and 6086, which is much more than it did for the U.S. <a rel="noopener noreferrer nofollow" title="dollar" href="https://thebittimes.com/tag/dollar.html">dollar</a> price,” the post concludes.</p>
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  “Plus, you’d 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’d put many many more eggs in your basket.”
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 <p>The charts included nonetheless show that since reaching a peak in both currencies in December 2022, the number of sats required to purchase the same dozen eggs has decreased more than the equivalent USD.</p>
 <p>BTC hodlers require 70% fewer for the purchase as of August 2023, the latest month for which Fed data is available, versus 58% less USD.</p>
 <figure><img src="https://cdn.thebittimes.com/images/2023/10/05/78510acbbd23a23ad7ad95a6fdff4b1c.webp">
  <figcaption style="text-align: center;"><em>Average price of a dozen eggs in satoshis chart (screenshot). Source: St. Louis Fed</em>
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 <p>Versus the start of 2021, the cost of eggs is higher for both currencies — 39% <a rel="noopener noreferrer nofollow" title="versus" href="https://thebittimes.com/tag/versus.html">versus</a> 73% for USD and BTC, respectively. Here, however, the arbitrary timeframe comparison remains less than helpful.</p>
 <p>At the time, BTC/USD traded at practically the same levels as at present, while the U.S. Consumer Price Index (CPI) year-on-year increase was under the Fed’s own 2% target. With the latter now a thing of the past, only a longer-term synopsis provides real insight into Bitcoin’s performance.</p>
 <p>The price of eggs is a fraction of what it was during Bitcoin’s last pre-halving year in 2019. “Eggflation” seen in 2023 is a comparative blip on the landscape.</p>
 <p>In <a rel="noopener noreferrer nofollow" title="dollar" href="https://thebittimes.com/tag/dollar.html">dollar</a> terms, the picture is one of solid price increases — the average in mid-2019, for example, was barely above $1.20 per dozen, or 40% less than now.</p>
 <figure><img src="https://cdn.thebittimes.com/images/2023/10/05/b9cfe40be265b3c52e55d5397387dfe0.webp">
  <figcaption style="text-align: center;"><em>Average price of a dozen eggs in USD chart (screenshot). Source: St. Louis Fed</em>
  </figcaption>
 </figure>
 <h2 id="recession-looms-large">Recession looms large</h2>
 <p>As Cointelegraph reported, attention is focusing on the greenback this month as the U.S. dollar index (DXY) balloons to near one-year highs.</p>
 <p><strong><em>Related: Bitcoin bull market awaits as US faces ‘bear steepener’ — Arthur Hayes</em></strong></p>
 <p>Actions by foreign states may seek to redress the imbalance as their currencies suffer, analysts suggest, while under the hood, the U.S. economy is showing warning signs.</p>
 <p>Recession in 2024 is becoming increasingly likely, with even the Fed's own data putting the odds at near 60% in September, while bond yields skyrocket in a fit of what is known as “bear steepening.”</p>
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-still-beating-us-dollar-versus-eggflation-fed-data-tbt65230.html">https://thebittimes.com/bitcoin-still-beating-us-dollar-versus-eggflation-fed-data-tbt65230.html</a></p>

Bitcoin still beating US dollar versus 'eggflation' — Fed data

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