Is the US Dollar Too Volatile?

[d1ceplayer]

It is normal to go down the value of dollars because unlike bitcoin, All people around the world known dollars and everyday it has an exchanging of money and in the natural process of course it will decrease and sometimes increase. You will know about it if you have some research for sure.

If you are talking about the value of Bitcoin in terms of US dollar, let me make it clear that it is not always the dollar that is volatile but the Bitcoin also whose value changes with the fluctuation in the market demand. The rise in the market demand rises its value and vice versa. Same could be said for the dollar. When Pakistan threatened to trade in Yuan, there was a huge chance that the value of dollar would fall but it did not happen and America softened for she never wants the dollar to fall to its knees in the international market.

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[bitkanu]

It is normal to go down the value of dollars because unlike bitcoin, All people around the world known dollars and everyday it has an exchanging of money and in the natural process of course it will decrease and sometimes increase. You will know about it if you have some research for sure.

If you are talking about the value of Bitcoin in terms of US dollar, let me make it clear that it is not always the dollar that is volatile but the Bitcoin also whose value changes with the fluctuation in the market demand. The rise in the market demand rises its value and vice versa. Same could be said for the dollar. When Pakistan threatened to trade in Yuan, there was a huge chance that the value of dollar would fall but it did not happen and America softened for she never wants the dollar to fall to its knees in the international market.

Isn't it obvious since few years ago that bitcoin is volatile? I think we're here talking how about USD can be volatile too when so many people are murmuring that bitcoin is just ridiculously volatile while they money they worshipped at is actually the same, it's just funny enough to see people across the world believing in a paper money with no more gold backup and people still skeptical about how bitcoin didnt have underlying value.

[crazymelons12]

Actually I think you are trying to suggest in the graph that the US dollar is really volatile  like bitcoin or may even be worse. I like how you presented your evidence but your analysis could not be so comprehensive and impressive. Note that the purchasing power of dollars do not directly describe volatility. For me the graph could mean a change in value of a product to purchase and not just a change in the value of dollar. Remember the rule of supply and demand? When a product's total supply drops, the purchasing power of dollars will then be weakened due to a higher price that will be imposed to it. The value of dollar in this case do not actually change but a product's value did change as it is needed. This is not a clear example of volatility but a natural and immediate response that we could see after some changes in the market. Another reason why I think this is not comprehensive, is that the graph presented covers a year long of events which fails to describe a daily, weekly or at least monthly reports to let allow us to see clearly how dollar drops in value.

[Sword555]

I do understand that the general nature of dollar is very unstable, since this currency is used so often to trade all over the world.

[Tungsten-1]

I do understand that the general nature of dollar is very unstable, since this currency is used so often to trade all over the world.

Yeah that is right. Dollars are so volatile too like bitcoins. Although dollars are being used globally and everything is just being dealt in dollars but still this currency isn’t stable enough as it would be. So don’t worry about bitcoins as well. Everything here isn’t stable even if you just check gold, it is a bit unstable at its own side. This really doesn’t affect the performance of that currency.

[timerland]

It isn't just something that can "possibly" happen, it's what always happened and what will continue to happen with every single fiat currency globally. The reason is simple - its supply is controlled by one single organization, instead of decentralized like gold and bitcoin.

USD isn't money. Money needs to be a store of value in the long run, and USD clearly isn't that, nor is any fiat.

We know that bitcoin is a good store of value, and is decentralized with no central manipulator of supply. To me, that presents a much better place to hold my own wealth despite the popular opinion being that bitcoin is too volatile. In the long term, no fiat ever survives. Not even the USD.

[Sword555]

Dollar has lost its value and I can surely say it though I'm not an expert of economics.

[squog]

I don't think you can compare the volatility of USD to BTC or any crypto currencies. USD may rise and fall but only in cents in the past months. That kind of movement is technically volatile but still ok by investors' books. BTC on the other hand is very volatile that business men don't trust it. But given a few more years, we will see a more stable crypto currency. Just you wait.

[OrangeSeller]

Dollar has lost its value and I can surely say it though I'm not an expert of economics.

It is not just dollar, every other currency of the world is volatile because they all are interlinked and the effect on one disturbs rest as well. The changes in the values are observed because every year, the buyers and sellers change in number.

The factors that affect the buying tendency of the buyers do not remain constant. Dollar is also volatile but the volatility in fiats is not as much prominent as that of bitcoin.

[Sword555]

As for me, I've heard that US owe China a lot of money, so they are in debt.

[EnricoGomez]

It is in it nature that dollars or fiat can be volatile too, the value always depends on the demand-supply of money and on its circulation around, over the country.
It has slowly lost its value, yes, but compare it with other economies - it has more valuable than most; it depends on the economic performance.
Well, it is not as volatile as bitcoin that it basically becomes a hassle in adjusting prices so constantly.

[danwanyd]

Value of the dollar and the dollar index fell not to talk, the dollar compared to mark mark very much (such as the United States and the country's real estate investment contrast, the United States and its consumer price index, as well as the world's consumer price index and real estate). Such calculations are complicated, so it is hard to use devaluations.

[bowals]

Too volatile would be an extreme word but all currencies suffer inflation, it's up to the central bank's to correct it

[ladydark]

Yes the purchasing power of USD and other fiat currencies are decreasing and it is no more a secret.It might be due to the printing of USD infinitely causing deflation.

[LooBaao]

Value of the dollar and the dollar index fell not to talk, the dollar compared to mark mark very much (such as the United States and the country's real estate investment contrast, the United States and its consumer price index, as well as the world's consumer price index and real estate). Such calculations are complicated, so it is hard to use devaluations.

In my opinion, the value of USD is quite stable, they fluctuate or the difference is only a little bit not too much. If we choose safe holdings between gold and USD I will choose usd as they are stable and I am confident in the big economies that have used the US dollar, they will grow their strong economy in the future. And usd co more and more valuable.

[lastnumber]

In my opinion, the value of the dollar is stable, probably only after the Japanese yen. For many reasons, currencies may have volatility in value, and the US dollar is not out of the rules. But if it dollar is volatile then it is not reasonable. So, keeping dollars in one's personal fortune is not a worry. Unless there are several billion dollars in your account.

[CryptoYonis]

Not too volatile as like cryptocurrency. But US dollar is the most used currency in the market so expected the up and down of the exchange to other currencies.

[jaysabi]

Value of the dollar and the dollar index fell not to talk, the dollar compared to mark mark very much (such as the United States and the country's real estate investment contrast, the United States and its consumer price index, as well as the world's consumer price index and real estate). Such calculations are complicated, so it is hard to use devaluations.

In my opinion, the value of USD is quite stable, they fluctuate or the difference is only a little bit not too much. If we choose safe holdings between gold and USD I will choose usd as they are stable and I am confident in the big economies that have used the US dollar, they will grow their strong economy in the future. And usd co more and more valuable.

It is only over very long periods of time (multiple decades) that the loss of value due to inflation is noticed in the USD. Year to year, there is very small change in the value of money. People commonly point out that the dollar has lost 98% of its value over the last 100 years, but nobody alive today had cash 100 years ago so nobody suffered that loss. It's a point that doesn't have a real world application. Further, all of the products and services that created that money 100 years ago no longer exist or are deeply depreciated themselves as assets, so it would only make sense that the money that represents those items is worth significantly less. The problem stems from the inability to store value indefinitely, which is why loss of value is a necessary component of money.

[aggeim]

And that is when the government supports it and will take every step possible to prevent the volatility. It will be thing of past with increasing dominance of bitcoins.

[BTC-BTC-BTC]

Usd is one of the more stable currency out there.