One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange.
Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions.
The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges are able to provide trading pairs with tokens representing traditional fiat currencies.
Value of $1 from 1800 to 2021
$1 in 1800 is equivalent in purchasing power to about $20.76 today, an increase of $19.76 over 221 years. The dollar had an average inflation rate of 1.38% per year between 1800 and today, producing a cumulative price increase of 1,976.05%.
This means that today's prices are 20.76 times higher than average prices since 1800, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 4.82% of what it could buy back then.
The 1800 inflation rate was 2.44%. The current year-over-year inflation rate (2020 to 2021) is now 1.40%. If this number holds, $1 today will be equivalent in buying power to $1.01 next year.
Why a euro today is worth only 69% of a euro in 1997
€100 in 1997 is equivalent in purchasing power to about €145.89 today, an increase of €45.89 over 23 years. The euro had an average inflation rate of 1.66% per year between 1997 and today, producing a cumulative price increase of 45.89%.
This means that today's prices are 1.46 times higher than average prices since 1997, according to the European Central Bank consumer price index. A euro today only buys 68.54% of what it could buy back then.
The 1997 inflation rate was 1.70%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%. If this number holds, €100 today will be equivalent in buying power to €101.50 next year.
Why a pound today is worth only 0.4% of a pound in 1751
£100 in 1751 is equivalent in purchasing power to about £22,764.87 today, an increase of £22,664.87 over 269 years. The pound had an average inflation rate of 2.04% per year between 1751 and today, producing a cumulative price increase of 22,664.87%.
This means that today's prices are 227.65 times higher than average prices since 1751, according to the Office for National Statistics composite price index. A pound today only buys 0.44% of what it could buy back then.
The 1751 inflation rate was -1.96%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%. If this number holds, £100 today will be equivalent in buying power to £101.50 next year.
Why a yen today is worth only 19% of a yen in 1961
¥100 in 1961 is equivalent in purchasing power to about ¥532.74 today, an increase of ¥432.74 over 60 years. The yen had an average inflation rate of 2.83% per year between 1961 and today, producing a cumulative price increase of 432.74%.
This means that today's prices are 5.33 times higher than average prices since 1961, according to the World Bank consumer price index for Japan. A yen today only buys 18.77% of what it could buy back then.
The 1961 inflation rate was 5.37%. The current year-over-year inflation rate (2020 to 2021) is now 0.48%. If this number holds, ¥100 today will be equivalent in buying power to ¥100.48 next year.
Why a renminbi today is worth only 21% of a renminbi in 1987
¥100 in 1987 is equivalent in purchasing power to about ¥474.15 today, an increase of ¥374.15 over 34 years. The renminbi had an average inflation rate of 4.68% per year between 1987 and today, producing a cumulative price increase of 374.15%.
This means that today's prices are 4.74 times higher than average prices since 1987, according to the World Bank consumer price index for China. A renminbi today only buys 21.09% of what it could buy back then.
The 1987 inflation rate was 7.23%. The current year-over-year inflation rate (2020 to 2021) is now 2.90%. If this number holds, ¥100 today will be equivalent in buying power to ¥102.90 next year.
Why a franc today is worth only 24% of a franc in 1961
fr.100 in 1961 is equivalent in purchasing power to about fr.409.52 today, an increase of fr.309.52 over 60 years. The franc had an average inflation rate of 2.38% per year between 1961 and today, producing a cumulative price increase of 309.52%.
This means that today's prices are 4.10 times higher than average prices since 1961, according to the World Bank consumer price index for Switzerland. A franc today only buys 24.42% of what it could buy back then.
The 1961 inflation rate was 1.85%. The current year-over-year inflation rate (2020 to 2021) is now 0.36%. If this number holds, fr.100 today will be equivalent in buying power to fr.100.36 next year.