DEVTOME.COM HOSTING COSTS HAVE BEGUN TO EXCEED 115$ MONTHLY. THE ADMINISTRATION IS NO LONGER ABLE TO HANDLE THE COST WITHOUT ASSISTANCE DUE TO THE RISING COST. THIS HAS BEEN OCCURRING FOR ALMOST A YEAR, BUT WE HAVE BEEN HANDLING IT FROM OUR OWN POCKETS. HOWEVER, WITH LITERALLY NO DONATIONS FOR THE PAST 2+ YEARS IT HAS DEPLETED THE BUDGET IN SHORT ORDER WITH THE INCREASE IN ACTIVITY ON THE SITE IN THE PAST 6 MONTHS. OUR CPU USAGE HAS BECOME TOO HIGH TO REMAIN ON A REASONABLE COSTING PLAN THAT WE COULD MAINTAIN. IF YOU WOULD LIKE TO SUPPORT THE DEVTOME PROJECT AND KEEP THE SITE UP/ALIVE PLEASE DONATE (EVEN IF ITS A SATOSHI) TO OUR DEVCOIN 1M4PCuMXvpWX6LHPkBEf3LJ2z1boZv4EQa OR OUR BTC WALLET 16eqEcqfw4zHUh2znvMcmRzGVwCn7CJLxR TO ALLOW US TO AFFORD THE HOSTING.

THE DEVCOIN AND DEVTOME PROJECTS ARE BOTH VERY IMPORTANT TO THE COMMUNITY. PLEASE CONTRIBUTE TO ITS FURTHER SUCCESS FOR ANOTHER 5 OR MORE YEARS!

Bitcoin and the Big Mac Index

The Economist magazine famously started publishing the “Big Mac Index” in 1986, in order to judge the real purchasing power of a currency, without the distortions created by the speculators on the foreign exchanges. The reason they chose a Big Mac to anchor their index was simple: Big Macs are sold in most countries in the world, and more importantly they are made to the exact same standard and taste the same no matter where you buy one.

Given that the product is the exact same everywhere, the price when converted into dollars at the prevailing exchange rate should be the same: so differences show where a currency is over-valued or under-valued by the foreign exchange markets. This page also converts the cost of Big Macs into Bitcoins.

Jan 2012

Here's the graphic showing the Big Mac Index, as at Jan 2012:

Bitcoin's price on January 1st 2012 was $7

This made the Big Mac worth the following prices in BTC as at Jan 2012:

Switzerland    0.97286085 BTC
Norway         0.96999999 BTC
Sweden         0.84428570 BTC
Brazil         0.81142855 BTC
Denmark        0.76714285 BTC
Australia      0.70571428 BTC
Argentina      0.66285713 BTC
Canada         0.66142856 BTC
Uruguay        0.66142856 BTC
Columbia       0.64857141 BTC
Euro Area      0.64571427 BTC
United States  0.59999999 BTC
Japan          0.59428571 BTC
Israel         0.31769230 BTC
Chile          0.58999998 BTC
New Zealand    0.57857142 BTC
Costa Rica     0.57428569 BTC
Britain        0.54571427 BTC
Singapore      0.53571427 BTC
Peru           0.52999999 BTC
Turkey         0.50571428 BTC
Czech Republic 0.49285713 BTC
UAE            0.46714285 BTC
South Korea    0.45571427 BTC
Latvia         0.44142855 BTC
Pakistan       0.41285713 BTC
Lithuania      0.40999999 BTC
Mexico         0.38571427 BTC
Philippines    0.38285713 BTC             
Saudi Arabia   0.38142856 BTC
Hungary        0.37571467 BTC
Poland         0.36857141 BTC
Egypt          0.36714284 BTC
Russia         0.36428570 BTC
Sri Lanka      0.36428570 BTC
Taiwan         0.35714285 BTC
Indonesia      0.35142855 BTC
Thailand       0.35142855 BTC
South Africa   0.34999998 BTC
China          0.34857141 BTC
Malaysia       0.33428571 BTC
Hong Kong      0.30285713 BTC
Ukraine        0.30142856 BTC
India          0.23142856 BTC

Jan 2013

In Jan 2013, Bitcoin was worth $13

Here are the values of a Big Mac in both dollars and Bitcoins as at Jan 2013:

Argentina	$3.82	0.29368803 BTC
Australia	$4.90	0.37695808 BTC
Brazil  	$5.64	0.43413581 BTC
Britain 	$4.25	0.32678327 BTC
Canada	        $5.39	0.41495049 BTC
Chile	        $4.35	0.33427092 BTC
China           $2.57	0.19786014 BTC
Colombia	$4.85	0.37308132 BTC
Costa Rica	$4.39	0.33790062 BTC
Czech Republic	$3.72	0.28631989 BTC
Denmark	        $5.18	0.39875002 BTC
Egypt	        $2.39	0.18408843 BTC
Euro area	$4.88	0.37523316 BTC
Hong Kong	$2.19	0.16853660 BTC
Hungary	        $3.82	0.29358691 BTC
India	        $1.67	0.12821713 BTC
Indonesia	$2.86	0.22003111 BTC
Israel	        $4.00	0.30772948 BTC
Japan	        $3.51	0.27030566 BTC
Latvia	        $3.28	0.25230471 BTC
Lithuania	$3.07	0.23580271 BTC
Malaysia	$2.58	0.19835824 BTC
Mexico	        $2.90	0.22343103 BTC
New Zealand	$4.32	0.33266000 BTC
Norway	        $7.84	0.60325223 BTC
Pakistan	$2.97	0.22841030 BTC
Peru	        $3.91	0.30053947 BTC
Philippines	$2.91	0.22356953 BTC
Poland	        $2.94	0.22639069 BTC
Russia	        $2.43	0.18659191 BTC
Saudi Arabia	$2.93	0.22562899 BTC
Singapore	$3.64	0.28032056 BTC
South Africa	$2.03	0.15585277 BTC
South Korea	$3.41	0.26220354 BTC
Sri Lanka	$2.77	0.21291480 BTC
Sweden	        $7.62	0.58638520 BTC
Switzerland	$7.12	0.54806533 BTC
Taiwan	        $2.54	0.19555389 BTC
Thailand	$2.92	0.22491372 BTC
Turkey	        $4.78	0.36749117 BTC
UAE	        $3.27	0.25131074 BTC
Ukraine	        $2.33	0.17946199 BTC
United States	$4.37	0.33595353 BTC
Uruguay	        $5.45	0.41892755 BTC
Venezuela	$9.08	0.69854354 BTC
Austria	        $4.60	0.35385081 BTC
Belgium	        $5.16	0.39664692 BTC
Estonia	        $3.66	0.28182808 BTC
Finland	        $5.09	0.39142788 BTC
France	        $4.89	0.37577077 BTC
Germany	        $4.94	0.37994600 BTC
Greece	        $4.48	0.34445654 BTC
Ireland	        $4.74	0.36428888 BTC
Italy	        $5.22	0.40186596 BTC
Netherlands	$4.68	0.36011365 BTC
Portugal	$4.00	0.30792327 BTC
Spain	        $4.75	0.36533269 BTC

Conclusion

The Big Mac Index won't be re-compiled again till Jan 2014, and this page will update at that point. However we can see gentle inflation in the USA - a Big Mac which cost $4.20 in Jan 2012 cost $4.37 in Jan 2013. However in bitcoins, the price halved.

Since Jan 2013 Bitcoin's purchasing power has increased - it trades for around $110 to $125. This has the effect of making the cost of a Big Mac only just over the 0.01BTC (for India which has the cheapest Big Macs) which allows you to enact the transaction without a fee.

It is possible that as the value of Bitcoin increases, it will be uneconomic to use it for basics such as buying food: no-one wants to purchase food where the transaction cost is more than the cost of the item. At that point Bitcoin will be used simply as an asset and other cryptcurrencies will be used for commercial transactions - perhaps Devcoin which has no transaction fee.


Bitcoin | Economics


QR Code
QR Code bitcoin_and_the_big_mac_index (generated for current page)
 

Advertise with Anonymous Ads