The mighty US dollar appears to be one of the world’s safest currencies. This sense of security has blinded many from seeing that the greenback has lost tremendous value over the past 100 years, a fact that should send investors piling into a surging Bitcoin.
In the early 1900s, a dollar could get you a nice pair of patent leather shoes. The currency had so much value back then because there was only $7 billion in circulation. A hundred and twelve years later (2012), the U.S. money supply swelled to $13.3 trillion, and a dollar can fetch you one song from iTunes.
With an overabundance of dollars in circulation, it is not surprising that its purchasing power has diminished considerably over time. According to Merk Investments, the greenback has shed over 95% of its value since the establishment of the Federal Reserve in 1913.