$1K in cash loses $446 to inflation over 20 years. In Bitcoin, it could become $146K.
Cash in 20yr
$554
purchasing power
Bitcoin (PL)
$146K
Power Law
Bitcoin (CAGR 20%)
$38K
conservative
Portfolio Comparison
$1K Over Time
| Years | Cash (3% infl.) | Bitcoin (PL) | Bitcoin (CAGR 20%) |
|---|---|---|---|
| 5yr | $863 | $8K | $2K |
| 10yr | $744 | $26K | $6K |
| 20yr | $554 | $146K | $38K |
| 30yr | $412 | $552K | $237K |
| 40yr | $307 | $1.6M | $1.5M |
Bitcoin preserves 264× more purchasing power than cash
Over 20 years at 3% inflation. Even if Bitcoin only matches 3% annual returns, it breaks even with holding cash. The Power Law model projects vastly more.
But What About Volatility?
Bitcoin's worst single-year drawdown has historically been around 70-80%. But the long-term trend has always recovered and exceeded previous highs. Cash, by contrast, loses purchasing power every single year with zero chance of recovery.
Not financial advice. Past performance does not guarantee future results.
Other amounts vs inflation
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