Every now and then, a chart depicting the “declining purchasing power” of the US dollar goes viral, especially within the crypto community. At first glance, it seems alarming—one dollar from a century ago buys dramatically more goods than today. The narrative often quickly shifts: holding dollars means you're slowly losing wealth, making alternative assets like Bitcoin or gold appear necessary.

While it's true that a dollar today doesn't go as far as it did a century ago, there's an important nuance these charts miss: cash isn't meant to sit idle indefinitely. Let's unpack why simply looking at purchasing power charts doesn't give you the full story—and why rushing into alternative investments based on fear might not be the most rational choice.