$500K in cash loses $223K to inflation over 20 years. In Bitcoin, it could become $73.2M.
Cash in 20yr
$277K
purchasing power
Bitcoin (PL)
$73.2M
Power Law
Bitcoin (CAGR 20%)
$19.2M
conservative
Portfolio Comparison
$500K Over Time
| Years | Cash (3% infl.) | Bitcoin (PL) | Bitcoin (CAGR 20%) |
|---|---|---|---|
| 5yr | $431K | $4.1M | $1.2M |
| 10yr | $372K | $12.8M | $3.1M |
| 20yr | $277K | $73.2M | $19.2M |
| 30yr | $206K | $276.2M | $118.7M |
| 40yr | $153K | $807.6M | $734.9M |
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
You might also like
New to Bitcoin? Start here.
Our free 10-module course covers everything from the basics to self-custody — no jargon, no shilling.
Want to customize these numbers?
Use the full Bitcoin FIRE Calculator to adjust your age, savings, expenses, and growth models. Plus explore our free 10-module Bitcoin course.