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!