Bitcoin vs Inflation Calculator

This calculator compares Bitcoin's historical USD return with the purchasing power lost to inflation over a chosen window. Leave the inflation override blank to use actual US CPI data. Free, no login.

Formula

Purchasing Power = Original Amount ÷ (1 + Inflation Rate)^Years

Worked example

$10,000 in 2014 buys only about $7,000 worth of goods in 2025. Over the same period, $10,000 invested in Bitcoin at 2014 prices is compared against that erosion using the calculator's historical series.

Source

US Bureau of Labor Statistics CPI (the calculator uses actual CPI by default). Annual CPI figures already on this page include 0.1% (2015) and 8.0% (2022).

Frequently asked questions

Is Bitcoin a good hedge against inflation?

Historically, Bitcoin has dramatically outperformed inflation. Since 2014, the US dollar has lost over 30% of its purchasing power to inflation, while Bitcoin has returned over 10,000%. However, Bitcoin is highly volatile — in individual years like 2022, BTC lost over 60% of its value while inflation was 8%. Bitcoin works best as an inflation hedge over longer time horizons (4+ years).

How does Bitcoin compare to the US dollar over time?

The US dollar loses purchasing power every year due to inflation. $10,000 in 2014 buys only about $7,000 worth of goods in 2025. Over the same period, $10,000 invested in Bitcoin at 2014 prices would be worth over $1.2 million at current prices. Bitcoin's fixed supply of 21 million coins contrasts with the continuously expanding dollar supply.

What is the CPI inflation rate?

The Consumer Price Index (CPI) measures the average change in prices paid by consumers for goods and services over time. The US Bureau of Labor Statistics publishes CPI data monthly. Annual CPI inflation has ranged from 0.1% (2015) to 8.0% (2022) in recent years. This calculator uses actual CPI data by default.

Why do some people say Bitcoin is not an inflation hedge?

Critics point out that Bitcoin is highly volatile and can lose significant value in short periods, which is the opposite of what a traditional inflation hedge (like TIPS or gold) does. In 2022, inflation hit 8% while Bitcoin fell over 60%. The argument for Bitcoin as an inflation hedge is strongest over multi-year periods, where its long-term appreciation has far exceeded inflation.

How much purchasing power has the dollar lost?

From 2014 to 2025, the US dollar has lost approximately 30% of its purchasing power based on cumulative CPI inflation. This means $100 in 2014 buys roughly $70 worth of goods today. The Federal Reserve targets 2% annual inflation, but actual rates have varied from 0.1% to 8.0% in recent years.