Dollar Purchasing Power Has Plummeted Since 1970

• The dollar has lost major value since 1970.
• Inflation continues to erode purchasing power.
• Highlights the need for alternative stores of value.

Decades of Decline for the Dollar

According to data from the Federal Reserve Economic Data (FRED) and River, the purchasing power of the U.S. dollar has drastically declined since the 1970s. What a dollar could buy back then now costs multiple times more, revealing how inflation slowly eats away at wealth.

This long-term trend isn’t new, but the scale of the drop is becoming harder to ignore. Whether it’s groceries, housing, or gas, the dollar buys far less today than it did 50 years ago.

Why the Dollar Keeps Losing Value

The erosion of the dollar’s value is mostly due to inflation — the gradual increase in prices over time. Since the U.S. moved off the gold standard in 1971, the government has had more flexibility to print money. While this supports spending and stimulus efforts, it also reduces the dollar’s purchasing power.

As more dollars enter circulation, each one becomes less valuable. This makes saving in cash risky over the long term, as the value of those savings declines year after year.

Is There a Solution?

For many, this ongoing loss has sparked interest in alternative assets like Bitcoin. Unlike fiat currencies, Bitcoin has a fixed supply, making it deflationary by design. Supporters argue it’s a better long-term store of value, immune to the inflationary pressures that plague the dollar.

While it’s not without risk, Bitcoin offers a way to hedge against a system where traditional money constantly loses value — a financial lifeline in an era of silent erosion.

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