Ever since Bitcoin is typically titled in fiat — United States dollars, it is ordinarily not immune to its reduction.
In the decade that accompanied the global economic crisis, the U.S. had experienced some of the lowest inflation in history, which flew around 2% yearly. Nevertheless, over the past ten years, this combined up to almost 20%.
Therefore, if the 2010 dollar is used as the base and applies its consequent reduction to Bitcoin’s price, the prevailing price of $10,466 converts into $8,770. Even though this may be a shocking realization for some long-time holders, it does not mean that Bitcoin was a low investment or that it is not a reliable store of value.
Just the opposite, if the Bitcoin is compared to the USD’s performance in the last ten years (overcorrected for inflation), then there is no correlation. One dollar invested in USD would have shifted into 84 cents, while one dollar invested in Bitcoin would be worth $274,000. Cryptocurrency has done a much more outstanding job of value storage.
Bitcoin is not protected against inflation either, though that might over-complicate the story slightly
As long as the fiat inflation rate remains low and Bitcoin proceeds to appreciate at a rapid pace that it has done until lately, the effect of fiat inflation may be negligible for most investors.
The only way to avoid it finally would be to stop denominating Bitcoin in fiat. Later, possibly, one decade from now, it could be discussed how many Satoshis one might hope to buy with a dollar.
