$25K in cash loses $11K to inflation over 20 years. In Bitcoin, it could become $3.7M.
Cash in 20yr
$14K
purchasing power
Bitcoin (PL)
$3.7M
Power Law
Bitcoin (CAGR 20%)
$958K
conservative
Portfolio Comparison
$25K Over Time
| Years | Cash (3% infl.) | Bitcoin (PL) | Bitcoin (CAGR 20%) |
|---|---|---|---|
| 5yr | $22K | $207K | $62K |
| 10yr | $19K | $641K | $155K |
| 20yr | $14K | $3.7M | $958K |
| 30yr | $10K | $13.8M | $5.9M |
| 40yr | $8K | $40.4M | $36.7M |
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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