# How can 1 BTC gain value in USD if inflation is happening?

So, right now, 1 BTC (bitcoin) is worth ≈ 578.25 USD. But, with the inflation of the USD, how can 1 BTC still hold its value at 578.25? Why doesn't it decrease?

Let's set this example:

1 BTC = 1 USD.

Then, the USD loses half of its value; 1 USD is now actually worth 0.50.

Why won't the BTC lose half of its value?

I guess this principle applies to any currency and I can't seem to grasp the idea.

So, any help will be appreciate.

I also hope that you can understand my question and if you need clarification, please ask!

• hmmz, you're talking about purchasing power I think, let's take your example: 1 BTC = 1USD If 1 USD loses half of it's value it's worth 0.5 'old' USD. If at the same time 1 BTC still equals 1 USD then indeed 1 BTC wil half lost half of it's purchasing power and will be worth 0.5 old USD.... maybe a more practical example: 1 BTC = 1 USD --> and 1 USD buys 1 bread. If 1 USD loses half of its value, then 1 USD = half a bread If 1 USD still equals 1 BTC, then also 1 BTC = half a bread so both USD and BTC lost purchasing power. If BTC didn't lose purchasing power then 1 BTC = 2 USD
– tibo
Jun 10, 2016 at 17:20