Bitcoin Forum

Spot the difference.

As you can see, the supply is limited for Bitcoin, but for the USD, they can print anytime and look at the purchasing power of USD, it's dropping.

Do you agree that one of the reasons why USD value is dropping is also because of cryptocurrency?

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We are all heading towards changing times and also the evolutionary changes in the world financial system. bitcoin and crypto are so interesting because they can support all financial transactions quickly, safely and easily so that this is the reason most people invest and use them in daily financial transactions. Now we should admit that change must begin slowly.

Even without the crypto currency USD or any fiat will really end up like dropping because of inflation and deflation in our economy.
The value deflate because of the inflation of price and service in a specific time and the purchasing power of the people decrease as well.

Though we can still equate fiat and crypto as to the value because of its supply but it doesn't necessarily mean that we can fully embrace bitcoin thus it takes time for some people to realize this.

As of now, there is still no direct effect cryptocurrency (especially Bitcoin) has on the price of the USA Dollar but this can be changing if and when central banks of other countries will prefer to get Bitcoin as one of the reserved currencies alongside with gold. And since this is not yet happening, cryptocurrency is existing alongside with the dollar as friends and not as a competitor. The real reason for the continuing drop of the real value of the dollar is because of inflation and that tendency of the government to just print more fiat money (called as quantitative easing which is a fancy name for printing money).

I don't think the USD value is falling due to Crypto, simply the USD following the world economy and now we are in a big recession. Trade wars are taking place between the US and China, which makes the value of the US plummet. Only when the USD is inflated, does it get crypto that affects its value.

Right now? I personally don't think so. While I think cryptocurrencies has an effect on the USD value to a certain extent, we're still so early that it's influence on USD's dropping price is simply too minuscule.The dropping price of the USD is still mostly due to inflation as far as I know, as inflation is still mostly the main reason for most if not all fiat's dropping value anyway.

Usd value will keep falling although bitcoin is not exist. It is because the fiat money system is not good. The government can print money regardless the amount of gold that the government have. So it is better for us to use gold or silver as storing value. And we can use bitcoin as an investment. The volatility of bitcoin is still too extreeme.

They are different because that's how they were designed. Having said that, if the USD is also a deflationary currency (lol this will never happen), then we can see its value rising over time however that means limited control for the government. The government needs to control their money supply in order to match that of the current economic situation of the country and of the world. They'd print up more money when needed and hoard when needed, too. On the other hand, bitcoin's price is decided by speculation and optimism, causing the price to go up higher than before in every cycle that happens within its market.

And no, the USD is not faling due to crypto.

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The cause of the decrease on the value of USD is multi-factorial- therefore lots of factors need to be considered before taking that kind of impact. As was mentioned, the USD is indeed a deflationary currency and the supply is being controlled by the government in order to control inflation. If the government decides to print money, this will cause an inflationary effect that will further decrease the value of USD.

On the other hand, cryptocurrency is free from any control and the law of demand and supply governs its price on the market. Having a limited supply makes it valuable which makes it more expensive as supply decreases. Cryptocurrency (specifically bitcoin) is an excellent store of value due to its high volatility that can be used as an investment tool for either short/long-term.

It's a more relevant and accurate comparison to use a basket of currencies, not just the USD, which is traditionally the default 'world' currency, but has so many behind the scenes problems (not to mention being issued by a country in the biggest hole of debt ever).   It's comparing a questionable store of value system to a 'sick' store of value system.    That said, I hold both, but of traditional currencies, the USD is the lowest ranked in my traditional currency portfolio (which is heavier in Euros, RMB/CNR, British Pounds, Singapore Dollars, AUS$, NZ$, etc).

Not right now. Sure, limited assets will increase in the future, but it will only happen if people lose confidence in their currency. I don't see that happening with the USD. Governments are aware of the fact that printing causes inflation. But they promote printing in a way that people don't lose their trust. USD is losing its value due to other factors, like the economy, trade wars and crude oil prices.

Bitcoin vs USD is never-ending series  ;) until people won't look at Bitcoin as a "Bitcoin" but for now, Bitcoin has broken the glass already and hit to $6,000 emphasizing that yet long way to go!

It's possible to be one of the reason but with the current situation we're in I don't think Bitcoin is the main reason why USD's value keep on decreasing.because a lot of people are still using it and there's no stats on how many people switched to Bitcoin. Also agree to what was said above by other users it's not that huge enough to become a threat to the big currencies (USD, CAD, CNY, etc).

The USD value are dropping because politicians and Bankers are working together to protect the interest of a few wealthy individuals. Inflation is one of the government tools to keep normal civilians spending abilities and saving abilities at the lowest possible level, because poor & uneducated people are easier to manipulate than wealthy people with money to pay for proper education.  :P

The Banks are supporting this out of greed, because they create money out of nothing with Fractional reserve banking practices. <They also rely on governments to bail them out, if it goes out of control.>  >:(

Bitcoin is not controlled by Banks or governments, but rather by supply and demand.  ;)

No need to look even at the history made before we were born. Just look at January when Bitcoin was only a little above $3000 and today it has almost doubled to $6100. USD probably lost value over that time but just more slowly.

Of course,,, people who bought BTC at 20k in 2017 will argue they lost 80% of their value in just under 1 year,,, but the fact is you keep BTC for years not months.

We are all know that Bitcoin and cryptocurrencies re-shape world economies. But I don't think it can affect dollars value direct way. We are focusing Bitcoin price so much. But the balance on global economy is affect to USD much more cryptocurrencies yet.

USD supply can be arranged. But Bitcoin will draw its future own. So we can only support it and watch it where will it go.

Cryptocurrency is still consolidating the USD, and some people do trade Btc/USD pair, USD keeps falling because of some of these factors: Increasing US debt profile without no plan to paying back, much budget for military defense and war, printing of USD at will, leading to too much supply. It's a matter of time before bubble is going to burst. The USD is not collapsing soon as long as the international community keep trading crude in USD, it's going to remain for this reason, any reversal will spill hell for the USD.

I wouldn't say crypto is a reason for it's value dropping, evidence being how long it's been dropping for, and how cryptocurrency is still fairly new.

Nowadays, people are starting to realize the true "value" of cryptocurrency over fiat. The limited supply of cryptocurrencies makes it invulnerable to inflation and more people are switching to cryptocurrencies. And of course fiat is so much vulnerable to inflation, the government keeps printing paper money, killing its value and not achieving balance in the economy.
Some more years and the whole world will switch to using cryptocurrencies.

I don't think there is no so much people in the world which thinking real value on cryptocurrencies. Because people still looks investment for cryptocurrencies. Firstly, we should use it payment method globally. When its done we can talk about real value rather than FIAT money.

And yes I agree, we may forget what is inflation in future. Because, technically, there is now way inflation with Bitcoin.

A small percent of the population uses cryptocurrencies. Even in the USA, where a LOT of fellows have or going to buy cryptocurrencies this % is less than 10%. Suppose, in future, more people will believe in BTC.

No, I don't think bitcoin or any other crypto-currency effecting on USD value. Yes USD could print whenever they want but its value depend on world economy. Bitcoin become a part of world economy but I don't think its disturbing to USD or any other real currency. Bitcoin just bring freedom on financial ecosystem. Limited supply one of the most important reason why bitcoin be a part of financial revolution.   

Yes, you are correct, bitcoin and it's value has no effect on the US dollar purchasing power. It is simply following the trend of inflation and our CPI rates. As there is a limited number of BTC, inflation rates do not apply.

However, one thing I must point out @Nunoluck...
while the US has the ability to continuously print US Dollars, we abandoned the gold standard back under Nixon in 1971. It is NOT better for us to use gold or silver as storing value.

As a complete aside to all of this as well.

Gold and Silver (precious metals) has been one of the worst asset classes to date, you'd make much better returns if you were to invest in Real Estate, Stocks, Etc. I never understand why people think that 'if the world ends, we're going back to gold.

No. If the world ends (zombies and shit) then we're going to be using bullets, guns, and food.

You don't mean usdt here right?

The USD value is dropping because of the following:
1. It's not backed by anything. It was previously backed by gold and silver.
2. Government can print it to eternity and devaluate the currency.

Bitcoin on the other hand:
1. Is also not backed by anything also. What is backing it is the processing power of the miners.
2. It's deflationary and minting of new bitcoins are fixed.

Basically, the USD is not a good store of value.
Bitcoin, in it's 10 years of existence, proved to be a better store of value than USD.

Deflation vs inflation

I don't think so, it's far from being related on why USD's value is dropping if the main is because of cryptocurrency. Bitcoin is more of an ideal store of value than USD that goes through inflation.

Yes he isn't talking about Tether but the United States Dollar.

that is true but not a fair comparison either. because bitcoin is new and is growing so it is supposed to rise like this. but USD is old and it should be stable and it is apart from the fact that since it doesn't have any "cap" it also has inflation so its value goes down.
in comparison bitcoin has a cap so it has deflation and should go up. and if you want to compare you have to compare bitcoin after its mass adoption with USD. and that would happen at least after another 10 years.

Very well said, for having a limited supply of Bitcoin is one of the most important. We really can consider the world economy why the value of USD is dropping, not also USD but there are still some national currency is dropping or increasing.

I do not think we can rely on the previous year graphs anymore because after cryptocurrency appeared into the internet more and more people got awarded about the economical balances. and this is the major difference between 2008 and 2009. people finally realized what to improve and what exactly is the problem. everyone started to grow now.

well its pretty obvious that bitcoin should beat USD in every possible scenario
( apart from the global force majeur ones , like internet collapse , war , quantum computing etc.)
bitcoin has a deflationary mechanism inbuilt and every single bitcoin becomes more and more valuable with time , while USD is nothing but a print-at-will paper
backed by nothing , operated by central banks and with an average of 1-2% inflation per year - officially
besides it seems like the debt is reaching the unsustainable levels so this situation has to be resolved very soon in this way or another

Bitcoin has limits and in the future it can become scarce, in that scarcity will be able to make the value of bitcoin increase, and holding bitcoin will be more able to generate large profits than holding USD.

A smart investor would hold both, they both fluctuate in value.

For storing value definitely bitcoin is better than fiat, its anonymous and not affected by inflation and got the big potential to be very valuable in the future, the market for fiat and crypto is different, crypto wont affecting fiat price at all, at one point people are tired depending on fiat where the store value keep on dropping every time, a smart people will look for alternative to store their wealth and crypto could be the answer

but the only downside is that bitcoin is online and being online means we are prone to hacks  .


huh ? i think it is . because people buys thier btc using fiats so fiats will decline while btc will up  .


huh ?  i think you miss write this one  . fiats are not volatile but bitcoin is , so bitcoin is the one that fluctuates   . fiat value decrease but not too much  .


not really  . most people are think will still prefer banks over cryptos when storing or securing thier cash  .

I think in almost all the countries of the world if cryptocurrency begins to accept. If that means, Government recognizes, and when all people start using every day, cryptocurrency will be the world's most valuable currency. Then no country will be able to survive USD, KWD, EUR, BHD in front of cryptocurrency.
But I think Bitcoin is the best...

It seems to me that now you need to keep everything.  Because the situation on the market is changing very quickly and you need to have time to restructure.  In any case, for one thing is not worth grabbing.

as I understood, the guy meant dollars and Bitcoin: which of the currencies it is better to store. There is no correct answer to this question. If we guess than BTC rises greatly, pick crypto.

There is no price dependence between a common currency and a cryptocurrency. That is, if the dollar loses its purchasing power, that is, is subject to inflation, this will in no way affect the price of Bitcoin. The dollar and other common currencies serve only as a measure of value for cryptocurrency. So easy to use. If there were no national currency, we would have to evaluate the cryptocurrency in our household goods that have material value for us.