Published on November 18th, 2015 | by bitcoin0
Bitcoin Version of “the Big Mac Index” unveiled by BitBond
The Economist’s Big Mac Index is a financial instrument almost thirty years old, built on the theory of the Purchasing Power Parity.
The Big Mac Index uses a McDonald’s Big Mac as its measuring stick.
However, Bitcoin loan market maker BitBond saw a missing currency – the other contender in the race to be the dominant reserve currency, Bitcoin.
At time of writing, a Bitcoin would buy you about 70 Big Macs in the United States, but 100 globally, making Bitcoin theoretically undervalued by up to 30% in the United States.
Just like the fiat Big Mac Index, BitBond’s version allows the user to compare the rates to local goods and services.