How the increase of the American inflation contributes to the increase of the BTC's and altcoins price? If the fifth largest currency in the market (USDT) is fiat currency based, at the same time that USDT is one of the main crypto-currencies used to transform fiat currency into crypto and vice versa (at least in my country), what are the arguments that contradict the possibility of the whole cryptomarket value being inflated (or estimated/valued) by the extra dollars that were put in the American economy since the beginning of the pandemics? What would be the means for evaluating how much independent of the American economy is the cryptocoins market? And above all, personally I believe that one day 1 Bitcoin could be equivalent to 1 million dollars, but what will be the real value of the dollar when this happens? Maybe I'm ignoring many things in this thought, so I tought that would be interesting to create this thread to know what you think about this.
- Bitcoins and other cryptocurrencies even though are strongly integrated with the general economy, they still don't get influenced enough to change their course if the USDT's market is undergoing inflation.
- The small changes that they might experience is generally nullified by new investors who are looking for something that might protect their investments from the government itself.
- You can take an example from the COVID itself, in the beginning we had extreme inflation in local markets and it affected everyone, but with time, cryptocurrencies like Bitcoins, not only registered an increase in their value as an asset but also gained recognition from various countries like El dorado.
- The level of integration with the economy would define how much it's affecting the market, hopefully it stays decentralized ( government manipulation and control is all together not a good thing for the market for long terms)