Bitcoin Forum

Is the US dollar really a stable currency? Does it always buy the same amount? Inflation really can't be that bad, can it? Let’s look at the price of a Big Mac in the U.S. for years 2004 – 2012 according The Economist:

2004: $2.90

2005: $3.06

2006: $3.10

2007: $3.22

2008: $3.41

2009: $3.57

2010: $3.73

2011: $4.07

2012: $4.45

Calculate that into percentage increases:

2005: 5.5%

2006: 1.3%

2007: 3.9%

2008: 5.9%

2009: 4.7%

2010: 4.5%

2011: 9.1%

2012: 9.3%

How is that for a stable currency? Inflation according to the government is supposed to be only 3% or lower! Bitcoin only performs better in purchasing power at this scale. It may be volatile but it isn't has negatively volatile as the US dollar.

References:

http://www.economist.com/content/big-mac-index

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

Food prices are also going up due to climate change and 7 billion people all wanting to have steaks.

Not saying the dollar is good, but you need to average over a few different types of goods.

GAD DAMNIT! I KNEW I SHOULD HAVE BOUGHT BIG MACS IN 2004

 >:(

Wow!. You sure had a rise in big mac prices in the US, Im sure the UK hasnt risen by that much at McDonalds...

This image may also be of interest:
http://img.metro.co.uk/news_focus/Bigmac.png

Yeah, but in the U.S., big macs moo, not whinny, :)

LOL we do love our horse burgers...
http://i1320.photobucket.com/albums/u530/robbiemacrs/2f04553d1de721cf6b0ce0f1315d4f74.jpg

Hasnt mcdonalds been punishing ppl who just buy sandwiches instead of a value meal. Last months the value meal for a big mac has been 5 dollars.

I am also pretty sure the price you quot seems wrong for my area for a big mac. Is that for an expensive state?

http://25.media.tumblr.com/tumblr_mbun21Y3Wm1rafupso1_500.jpg

Oh, I have!  Just check out my stock pile.

I think the title of your post is misleading/rubbish.  'Volatility', as far as you can determine it by year over year changes has been much lower for big mac than for bitcoin.

smarter man than I...  >:(

+1
compare apples to apples. Find anything that moves like that over hours not years and you might be on to something.

Thats nothing. Electricity prices here went up 40% last year.

The value of a deflationary currency is always going to be attractive :)

Think at the good part, you can buy more bigmacs with 1 btc  :D

Yes. Stable in reducing in value.

 :D

You silly city-dwellers are getting fucked as usual.  Big macs are still only about $3.50 here.  Still, it's quite a jump from what it used to be.

Then, 1 btc = pack of 10 big macs :D :D

This is all quite amusing. But a Big Mac is hardly an ideal economic benchmark--prices of things that go into it as well as of the energy consumed in making it have been rising in absolute (not just monetary) terms, and demand has been increasing of late. There is no ideal benchmark (and gold is not even one of the better ones, despite what its proponents say). Some of the better benchmarks are those with very stable supply and demand, not subject to speculative bubbles or industrial cycles, such as

Salt (as mined, not purified versions.)

Argon and xenon

Heavy water (deuterium oxide); deuterium gas might also be a good proxy.

Perhaps someone can concoct a basket of such benchmark commodities some day. I would like to see currencies measured against it.

Food prices are based on oil prices, and everyone knows oil is very volatile.  In the US, only 12% of the cost of a loaf of bread is the wheat, while in the developing world, this can be 70%.  In the US, the main cost of food is the cost of distribution, not the cost of the food commodities. And the main cost in food distribution is the cost of oil for transportation. So looking at the price of oil tells us a lot about the price of food.

10/10, lold hard. Also, you think the price of a Big Mac is volatile? Look at the price of bitcoin in the last week. Point = made

take a look at the price of a litecoin over the past day

I remember back in 2002-ish buying hamburgers at McD's for $0.39/ea.  Now you're lucky if anything labeled "burger" can be found for less than a dollar.