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Author Topic: The Impact of US dollar on Bitcoin  (Read 211 times)
buwaytress
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March 27, 2021, 11:46:16 AM
 #21

I would hope there is some impact.

Imagine if the US dollar continues to lose value at current or accelerated rates of inflation -- it would take only 4 years to get it to over 10% inflation. Another 4 years and we'll be at 25% inflation.

Surely Bitcoin pricing has to take that into account. Otherwise, it's pointless to keep reaching new ATHs that can't keep up with USD inflation.

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March 27, 2021, 07:11:23 PM
 #22

I would hope there is some impact.

Imagine if the US dollar continues to lose value at current or accelerated rates of inflation -- it would take only 4 years to get it to over 10% inflation. Another 4 years and we'll be at 25% inflation.

Surely Bitcoin pricing has to take that into account. Otherwise, it's pointless to keep reaching new ATHs that can't keep up with USD inflation.
Think about it this way. Bitcoin is pegged to dollar in almost everywhere, even in other countries we hear about how much dollars bitcoin became, not pounds, not euros, not something else, it is always dollars.

So that means dollars per bitcoin will always be the thing we calculate it for, let's say you live in a nation and dollar became more valuable because your nation lost value, Turkey had that very recently from what I read, and that means even at the same dollar level your money now worths more in that fiat, but we still do not say bitcoin went up do we? That is why dollar will always have an impact on bitcoin price for sure because it's pegged to it. Plus dollars printed last year and this year combined makes dollar less valuable if you ask me, and that is why I think it is obvious that people are optimistic about the future of bitcoin since dollar will keep losing value with inflation.

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March 28, 2021, 04:28:27 PM
 #23

Think about it this way. Bitcoin is pegged to dollar in almost everywhere, even in other countries we hear about how much dollars bitcoin became, not pounds, not euros, not something else, it is always dollars.

So that means dollars per bitcoin will always be the thing we calculate it for, let's say you live in a nation and dollar became more valuable because your nation lost value, Turkey had that very recently from what I read, and that means even at the same dollar level your money now worths more in that fiat, but we still do not say bitcoin went up do we? That is why dollar will always have an impact on bitcoin price for sure because it's pegged to it. Plus dollars printed last year and this year combined makes dollar less valuable if you ask me, and that is why I think it is obvious that people are optimistic about the future of bitcoin since dollar will keep losing value with inflation.

That is not true though, I trade in at least 1 country and Bitcoin is in the value of the local currency there (currently in 6-figure territory since January 2021!). And I know for certain people have been talking about it in the local currency too -- same as price of gold and oil, it's a very local context. People in UK see it in pounds too, so you're at least a little wrong there.

But anyway, not arguing about dollar as a universal peg or currency of value. Just thinking it might be time people eventually think of a more universal alternative. Bitcoin seems pretty cool;)

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