Bitcoin BTC/USD advocates have often pitched it as a form of protection against inflation and currency devaluation. 

The housing market is one sector where this widely touted narrative has some reality, with every dollar buying fewer homes each year while every unit of Bitcoin boosts the holder's purchasing power.

What happened: According to the National Association of Realtors, the median home price in the U.S. for existing homes, a key indicator of the U.S. housing market's strength, was $398,400 as of February 2025, marking a 3.8% increase year-over-year and the 20th consecutive month of year-over-year gains.

When compared to prices five years ago, the growth rate accelerates even further. In February 2020, the median home price was $270,000, indicating a 38% price spike. 

Notably, Bitcoin traded at an average price of $8,543.70 in February 2020, implying that around 31.60 BTCs would have been required to purchase a house on average.

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Fast forward to February 2025, when Bitcoin's average price swelled to $84,381.20. This meant that to buy a home, the average price of which was $398,500, would require around 4.72 BTCs.

Needless to say, with 31.60 BTC, someone might have purchased their dream home, complete with elegance, show, and all necessary conveniences.

Another way to look at this is that if someone had resisted putting 31.60 BTC to buy a home in 2020 and held on to it until February 2025, they would have been able to invest around $2.6 million, which is equivalent to purchasing approximately 6.7 median homes.

The bottom line is that every dollar is becoming less valuable with time, while every Bitcoin is sidestepping this creeping inflation with growing returns, positioning it as a potential hedge against a system where homes become ever-pricier for the average earner.

Price Action:  At the time of writing, Bitcoin was exchanging hands at $85,433.18, up 1% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the cryptocurrency has fallen 9.33%.

Photo Courtesy: Yalcin Sonat on Shutterstock.com

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