Big Mac index crashes below 10,000 satoshis for the first time

The end of fast food – Big Mac index crashes below 10,000 satoshis for the first time

The Big Sats Index reveals that McDonald’s main burger costs less than 10,000 satoshis for the first time.

The fact that the price of Bitcoin (BTC) is currently stronger than ever is no longer a secret, even among the general public, but yet Bitcoin Profit another key figure illustrates the current strength of the cryptocurrency.

As the data of the crypto information portal Ecoinometrics shows, the so-called Big Sats Index shows for the first time that a Big Mac from the world-famous fast food chain McDonald’s costs less than 10,000 satoshis.

Hard to swallow?

Following the well-known Big Mac index, the Big Sats index tracks the purchasing power of Bitcoin. The Big Mac Index was created in 1986 by the British business newspaper The Economist to compare the different purchasing power of fiat currencies in an easy-to-understand way.

The Bitcoin-related counterpart, however, not only aims to show where the market-leading cryptocurrency currently stands, but also comments with a wink on social developments regarding money and food.

As the author Saifedean Ammous explains in his book „The Bitcoin Standard“, both the steady rise of the currency market and the success of the unhealthy foodstuff are the result of the abolition of the gold standard, which ushered in an almost limitless monetary policy. As with the Big Mac, quick gratification triumphs over long-term well-being.

But salvation is in sight, because the Big Sats index now indicates that Bitcoin, i.e. the antithesis of the aforementioned development, is well on its way to correcting this grievance. Thus, at a price level of 60,000 US dollars, a whole 10,402 Big Macs can be acquired for just one BTC, as Ecoinometrics calculates. A single burger of this variety, on the other hand, would cost only 9,614 Satoshis. As a reminder, Satoshi is Bitcoin’s subordinate currency unit on a scale of 1:100,000,000, so 1 Bitcoin is equal to 100 million Satoshis.

During the last big crash in March 2020, a Big Mac was still priced at 100,000 satoshis, which makes clear the drastic change in purchasing power in recent months. Meanwhile, the last time the burger was more expensive than 1 million satoshis dates back to mid-2016.

The intemperance is coming to an end?

In an overarching sense, then, the Big Sats index is another example to support the crypto community’s central argument that fiat currencies tend towards zero in the long run compared to bitcoin because the former has no natural cap.

The Corona crisis has gone a long way to confirming this thesis, as the world’s governments „print“ money incessantly to prop up the economy. Since no real equivalent can be created for this money through the lockdown, inflation is driven up and national currencies lose their value. This is a key reason why many investors are „fleeing“ into the market-leading cryptocurrency.