Bitcoin or Dollar Scarcity

[LEEMEEGO]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

 Bitcoins price inflation and deflation is not dependent on the amount of dollars rather it is dependent on the buy and sell in the market. What makes the price of bitcoin goes up and down is the demand in the market and the remaining supply of bitcoin. Bitcoin is very limited compared to dollars. So there no relationship between dollars and bitcoin

this is somewhat  the supply and demand law. if the price increases, meaning the demand of the market to acquire bitcoin is at high yet there is a small supply in the market because users tend to hold their bitcoins. on the other hand, the price decreases because there are so much supply in the market. and only few demands.

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[Idrisu]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

Currently china economic influence bitcoin pricing more than any Economic around the world! And because of this bitcoin will never remains faithful to a single currency like US dollar. I don't think we have a sound proof system against inflation and deflation for now and bitcoin is not an exception.

[Xester]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

Currently china economic influence bitcoin pricing more than any Economic around the world! And because of this bitcoin will never remains faithful to a single currency like US dollar. I don't think we have a sound proof system against inflation and deflation for now and bitcoin is not an exception.

That is very true since bitcoin can be purchased using Php, Yuan, Euro pounds and many other currencies. This fact tells us that even without the US dollars bitcoin can still flourish, like fore example the pounds will take over US Dollar as the standard legal tender then still bitcoin will still function like it is now. If I were to choose between bitcoin and US dollar I will probably choose bitcoin.

[romero121]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

Currently china economic influence bitcoin pricing more than any Economic around the world! And because of this bitcoin will never remains faithful to a single currency like US dollar. I don't think we have a sound proof system against inflation and deflation for now and bitcoin is not an exception.

China's influence on bitcoin have decreased a lot. This happened once after the inspection from the PBOC on most of the exchanges. Soon after this few exchanges got shut down and the regulations were made strict. This too is to make their own economy stable.

[meemiinii]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

 Bitcoins price inflation and deflation is not dependent on the amount of dollars rather it is dependent on the buy and sell in the market. What makes the price of bitcoin goes up and down is the demand in the market and the remaining supply of bitcoin. Bitcoin is very limited compared to dollars. So there no relationship between dollars and bitcoin

this is somewhat  the supply and demand law. if the price increases, meaning the demand of the market to acquire bitcoin is at high yet there is a small supply in the market because users tend to hold their bitcoins. on the other hand, the price decreases because there are so much supply in the market. and only few demands.

i agree with you guys.

i remember how the market has been affected by the pre decision of ETF and the result after the rejection.

just weeks before the rendering of the decision, bitcoin price is so high because most people are holding their coin because they are hoping that the ETF will be approved by the SEC and the approval may have a huge impact to the price. BUT what happened is that it has been rejected.. so holders happened to panic sell. by then the supply of the coins in the market went high. sellers are hoping to sell it on a high price before it will fall hard.

so i think this is somewhat a good example too about the supply and the demand thing that affects the price of the bitcoin. and i dont think so that dollars affects the price of bitcoin.

[deisik]

Frankly I don't exactly understand what you try to say.

Bitcoin doesn't break any economic rules. In regard to scarcity, Bitcoin is much more scarce than the USD, that is subject to so called "Quantitative Easing", meaning that the number of monetary units is steadily increasing without an upper limit. So inflationary devaluation of the USD is a certainty

Obviously, this is a false assumption. The fact that the number of monetary units increases doesn't in and of itself mean that the US dollar is less scarce than Bitcoin. Given only that (i.e. just growth in the number of monetary units), we can't even claim that the dollar becomes less scarce on its own. The reason is quite simple, though. There is no abstract scarcity. Scarcity should always be related to something in respect to which monetary unit changes its quantity. More specifically, if the number of US dollars increases but the number of dollar holders and users increases even faster, then you can't possibly say that dollars become less scarce (when in fact they become more scarce). It is basically the same with US dollar scarcity versus Bitcoin scarcity, since just taking into account the number of monetary tokens issued cannot give any definitive answer (we should also consider the number of users of these currencies). If you are going to flare up and spit out curses, think twice before doing that since you are flat-out wrong here

Regarding the OP's question, I didn't quite understand what he meant to ask either

[PokerDiceMan]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

i think have relationship about bitcoin price with dollar value but not big affect
bitcoin price down is affect bitcoin unlimited issue and about ETF, not big affect about dollar value down price

[bravehearth0319]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

At the present time now,it's sad to admit for a bitcoin enthusiast like me that dollar still the main currency now in the entire world. But sooner or later bitcoin will be the main and dollar I don't know it maybe disappear or not. But the reality now is that the community all around the world are not yet prepared into bitcoin.

[Erza]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

 Bitcoins price inflation and deflation is not dependent on the amount of dollars rather it is dependent on the buy and sell in the market. What makes the price of bitcoin goes up and down is the demand in the market and the remaining supply of bitcoin. Bitcoin is very limited compared to dollars. So there no relationship between dollars and bitcoin

this is somewhat  the supply and demand law. if the price increases, meaning the demand of the market to acquire bitcoin is at high yet there is a small supply in the market because users tend to hold their bitcoins. on the other hand, the price decreases because there are so much supply in the market. and only few demands.

Of course, it is pretty basic law in trading, but we never know what is changing people, why they want to buy bitcoin in such higher price. And the correspond between usd and bitcoin is actually zero, the demand is coming from people not from USD. And if USD changing bitcoin price that means bitcoin to USD will be change too. This is one sided dependency

[aardvark15]

Bitcoin and USD are inversely correlated. While bitcoin is deflationary because of its limited supply and increasing demand, USD is inflationary because of its increasing supply.

Yes and as a result, Bitcoin should continue to increase in price relative to the US dollar. This assumes that Bitcoin survives and is not over regulated.

[Chikito]

for usd is the currency used for world trade, the turnover is not spared from its inflation, USD strengthened as currency traded with another, because history USD born with independent and refuses help from europe bank. and when it said inflation in USD then the question will be the purchasing power of the market, in some of the world trade and remains using USD, and bitcoin calculate keselurah value of the USD, although other currencies can buy a bitcoin, then there is a big change between different currency to usd for purchase bitcoin, and bitcoin price makes the increasingly uphill.

[DrPepperJC]

The dollar is the main and most reliable currency, short of gold. And bitkoyn is simply an electronic currency that is not regulated by anyone and is suitable only for short-term investments. Perhaps, even in captivity there are people who do not yet know what bitkoyn is and what to do with it. To break them, it is necessary that bitkoyny become more popular.

[BitcoinPC]

I found myself thinking that bitcoin may have a serious relationship with dollar as this relation can be showed in inflation/deflation phenomena but what encounters logic of the rules of inflation/deflation is that bitcoin has increase and decrease at the same time and exponentially . Thus How can we suppose that bitcoin may break the rules of inflation/deflation and some economic rules ?And can bitcoin remains faithful to US dollar?

You will have to be more clear than that if you want a meaningful discussion.

Agreed, actually 2 and 3 questions are here in this thread. I want to reply, As i understand this thread. But about inflation and deflation it is a normal part of crypto currencies. In my view, it is a basic rule of economic to make money. Otherwise, talk about US dollar, so it is comfortable for all countries people to convert bitcoin into Dollar, the reason is that Dollar is popular in all over the world.

[bitbunnny]

I don't think Bitcoin and US dollar are so tightly connected. There is coorelation like with other fiat currencies but in sense of inflation/deflation they don't have direct causal relation because different factors and conditions influence on these two currencies. These are normal part of cycle for every currency but I can't see any special connection between dollar an Bitcoin.

[deisik]

I don't think Bitcoin and US dollar are so tightly connected. There is coorelation like with other fiat currencies but in sense of inflation/deflation they don't have direct causal relation because different factors and conditions influence on these two currencies. These are normal part of cycle for every currency but I can't see any special connection between dollar an Bitcoin

Apart from the fact that Bitcoin is mostly quoted in the US dollar

It is the same with gold. Whenever the dollar starts to decline, the gold price starts to rise and vice versa. Since gold is basically forever it's value doesn't get much affected on its own, the change in its value is always caused by indirect factors. For example, the economy of the US starts to decline (or just slows down), people move their wealth into real assets such gold, and gold value rises. And this is apart from purely mechanical dependence between prices of gold and the dollar (as revealed by the USX index). Bitcoin is by far more more volatile on its own, of course, but its price is still negatively correlated with the US dollar mostly

[naidray]

I don't think Bitcoin and US dollar are so tightly connected. There is coorelation like with other fiat currencies but in sense of inflation/deflation they don't have direct causal relation because different factors and conditions influence on these two currencies. These are normal part of cycle for every currency but I can't see any special connection between dollar an Bitcoin

Apart from the fact that Bitcoin is mostly quoted in the US dollar

It is the same with gold. Whenever the dollar starts to decline, the gold price starts to rise and vice versa. Since gold is basically forever it's value doesn't get much affected on its own, the change in its value is always caused by indirect factors. For example, the economy of the US starts to decline (or just slows down), people move their wealth into real assets such gold, and gold value rises. And this is apart from purely mechanical dependence between prices of gold and the dollar (as revealed by the USX index). Bitcoin is by far more more volatile on its own, of course, but its price is still negatively correlated with the US dollar mostly

If you ask, can you go to the store and buy food with bitcoin, can you ride the subway to work with bitcoin, I would say know how the world works now is that is all based on fiat money so as long as bitcoin is not accepted we can’t compared to any currency out there, it is more of a type of investment just like gold, so bitcoin and dollar are different from each other.

[xuan87]

In my opinion actually both of them is not really related but because we like to used dollar as exchange currency then whenever US dollar price change then bitcoin price will also affected, if we are using different type of exchange currency then it will also affected, so dollar only affected bitcoin because we are using it as the exchange currency and US dollar got inflation and deflation so it is adding the bitcoin swinging price frequency

[deisik]

I don't think Bitcoin and US dollar are so tightly connected. There is coorelation like with other fiat currencies but in sense of inflation/deflation they don't have direct causal relation because different factors and conditions influence on these two currencies. These are normal part of cycle for every currency but I can't see any special connection between dollar an Bitcoin

Apart from the fact that Bitcoin is mostly quoted in the US dollar

It is the same with gold. Whenever the dollar starts to decline, the gold price starts to rise and vice versa. Since gold is basically forever it's value doesn't get much affected on its own, the change in its value is always caused by indirect factors. For example, the economy of the US starts to decline (or just slows down), people move their wealth into real assets such gold, and gold value rises. And this is apart from purely mechanical dependence between prices of gold and the dollar (as revealed by the USX index). Bitcoin is by far more more volatile on its own, of course, but its price is still negatively correlated with the US dollar mostly

If you ask, can you go to the store and buy food with bitcoin, can you ride the subway to work with bitcoin, I would say know how the world works now is that is all based on fiat money so as long as bitcoin is not accepted we can’t compared to any currency out there, it is more of a type of investment just like gold, so bitcoin and dollar are different from each other

The question is not about Bitcoin being different from the dollar

Indeed they are different. But that's not my point absolutely. The fact that they are not the same doesn't somehow belittle the
observation that their prices are correlated (negatively). And this is what we should expect since Bitcoin price is most often quoted in dollars. That's why the price of dollar directly and mechanistically affects Bitcoin. But this is not only a statistical relationship but rather a causal one. Moreover, it is unidirectional, i.e. it is Bitcoin that depends on the dollar strength (or rather weakness), but the reverse is not true. In other words, Bitcoin is not dollar's funeral