CPI vs BTC

CPI versus Bitcoin price

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is calculated by the Bureau of Labor Statistics (BLS) and is used to track changes in the cost of living over time. The CPI is widely used as an indicator of inflation in the United States.

The Producer Price Index (PPI) is a measure of the average change over time in the prices received by domestic producers for their output. It is a wholesale measure of inflation that is compiled from thousands of indexes measuring producer prices by industry and product category 12. The PPI is used to track changes in the cost of production over time and is often used as an early indicator of inflationary pressures in the economy.

Inflation is relevant to Bitcoin because it is a decentralized digital currency that operates independently of any central authority, including the Federal Reserve. Bitcoin’s limited supply and deflationary nature can make it a more attractive store of value than traditional currencies. Bitcoin is not subject to the same inflationary pressures as fiat currencies.