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Author Topic: how does devaluation of national currencies affect the crypto ecosystem?  (Read 161 times)
Morbid
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August 16, 2018, 11:18:23 PM
 #1

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?

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August 17, 2018, 03:10:32 AM
 #2

Bitcoin is indeed a good alternative.

However as it is too volatile, people from those countries should keep Small amounts of btc and higher amounts of dollars, as hedge to protect themselves.


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August 17, 2018, 03:22:36 AM
 #3

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?

India imports a lot of oil from other countries and it is the one causing more impact on its currency devaluation. If oil prices go up then they need to spend more Indian currency to buy oil in dollars which reduces demand for Indian currencies.

Based on my knowledge if countries are allowed to trade bitcoin then people may move some funds to invest in cryptos but countries like India, they have already banned crypto trading so they may prefer to hold gold than bitcoins.
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August 17, 2018, 05:03:38 AM
 #4

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?

The issue is that by the time people in those countries realise their currency is devaluing, it's too late, they can't really afford to buy much bitcoin. You really need to diversify into bitcoin in the good times before the s**t hits the fan.

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August 17, 2018, 05:47:30 AM
 #5


The issue is that by the time people in those countries realise their currency is devaluing, it's too late, they can't really afford to buy much bitcoin. You really need to diversify into bitcoin in the good times before the s**t hits the fan.
What if such countries decide to adopt the US dollar (or any other global global liquid fiat) as their currency when theirs get devalued, in the place of cryptocurrency that they are hesitant to accept?
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August 17, 2018, 05:56:06 AM
 #6

It doesn't affect the "crypto ecosystem" at all.There's big inflation in Venezuela and Turkey,has this affected the current cryptocurrency prices?Nope...
What do you mean by crypto ecosystem?Crypto markets and trading?
I think that crypto ecosystem is the blockchain and all the mining ledgers.

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August 17, 2018, 05:56:38 AM
 #7

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?

The issue is that by the time people in those countries realise their currency is devaluing, it's too late, they can't really afford to buy much bitcoin. You really need to diversify into bitcoin in the good times before the s**t hits the fan.
If these all countries mentioned above was adopted bitcoin into their place then probably they have alternate currency aside from precious stones to keep as assets but since cryptos(bitcoin) was prohibited to use the Crypto ecosystem has no effect on the devaluation of the national currencies(IMO).
But even those countries prohibited crypto there are some people keep holding bitcoin as their assets.

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August 17, 2018, 06:05:00 AM
 #8

It seems to me that the change in the exchange rate of national currencies relative to USD has no effect on the "cryptosystem". These events and news can be used to speculate with crypto-currencies.

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August 17, 2018, 08:39:26 AM
 #9

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?
I think that there is no global influence. Citizens of the country where the devaluation occurs will invest their savings in some assets, including crypto-currencies.

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August 17, 2018, 11:17:45 AM
 #10

What do you mean by crypto ecosystem?Crypto markets and trading?
I think that crypto ecosystem is the blockchain and all the mining ledgers.

i mean the buying pressure upon various crypto assets - not just bitcoin but number of other coins too. ud be surprised but some people would rather own 3 ripple than 0.xxxxxxx bitcoin..

im trying to predict at what point would populous in those nations subjected to devaluing money realise that bitcoin at its low cost is perhaps better than holding usd. especially in places like turkey they realise that this problem is mostly political & being caused by united states foreign policy, therefore they might be reluctant holding the enemy's money, if you know what i mean..

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August 17, 2018, 12:08:46 PM
 #11

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?
That is exactly the only reason I believe bitcoin will definitely be higher than what it is right now.
Bitcoin will worth a lot more in the future for sure just because of two things. One is the mining will cost more because of halving, however this has nothing to do with our current topic in hand.

National currencies always devalues, look at house prices 50 years ago and look at them now. Look at the car prices, salaries, school costs, you look at ANYTHING and dollar lost value against it, burgers cost more today than 10 years ago. Now why wouldn't bitcoin be worth more against dollar over time ?

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August 17, 2018, 12:17:43 PM
 #12

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?

Traditionally when crap hits the fan, people go into the precious metals for stability and security until the currency market corrects.

It's possible with the growth of crypto in these emerging economies, the trend may be to go into crypto. due to the increasing ease of access  to convert Fiat to crypto.

But in saying that it is much more volatile than any precious metal..
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August 17, 2018, 12:26:58 PM
 #13

What do you mean by crypto ecosystem?Crypto markets and trading?
I think that crypto ecosystem is the blockchain and all the mining ledgers.

i mean the buying pressure upon various crypto assets - not just bitcoin but number of other coins too. ud be surprised but some people would rather own 3 ripple than 0.xxxxxxx bitcoin..

im trying to predict at what point would populous in those nations subjected to devaluing money realise that bitcoin at its low cost is perhaps better than holding usd. especially in places like turkey they realise that this problem is mostly political & being caused by united states foreign policy, therefore they might be reluctant holding the enemy's money, if you know what i mean..

Yes of course.People of such countries would think that bitcoin would be a much better option than holding dollars or their devalued currencies.Bitcoin is universally accepted of course.Its free from deflation as nd totally out of the reach of governments hands.


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August 17, 2018, 05:58:14 PM
 #14

Of course I'm not an economic expert but from my view I don't see the Direct dependence between those two things because money inflation was a case always, even before cryptocurrency exist.

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August 17, 2018, 06:26:50 PM
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It might not pan out immediately seeing that only a few people really know about bitcoin but once awareness is spread across borders, people would absolutely love to use bitcoin to save them from their asset's devaluation. Right now it wouldn't cause much of a dent on the price seeing that the citizens of these economically oppressed countries are still in disbelief, but in the future, once they discovered that there's already an alternative to gold, the future is bright for bitcoin and could be used as an effective store of value and could act as a hybrid reserve for countries with high inflation rates like the one we're seeing right now (Venezuela, Zimbabwe etc.)

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August 17, 2018, 06:41:54 PM
 #16

i think you have related the devaluation of these currencies with the power of the us dollar , these currencies are down because of their bad economy with the exception of china which have to keep their currency low against dollar for importing/exporting their goods.
US dollar isn't very stable or reliable to keep your money , it's fluctuating with trump decisions unlike gold which is a stable asset.

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August 17, 2018, 06:50:37 PM
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normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold.

They do love BTC in India. The problem is that since the rupee is rather unstable the government is trying to stop people from dumping it and lowering its value even more. If your currency is going down and there are ways that you can use to move your money out of the country and even make more money by doing it, people will jump at the opportunity, just like the Chinese were doing in 2013 and 14, until their government banned BTC.

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August 17, 2018, 07:10:06 PM
 #18

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?
The main market pair is BTC/USD so the devaluation in those countries does not affect bitcoin too much, it is obvious that in those countries there is a market for bitcoin and their local currency but most of the time the exchange rate is very similar to the BTC/USD exchange rate.

However and inflation of the dollar is going to have a massive influence in the price of bitcoin in the future, right now the US is having the best of both worlds they can print as much currency as they want and still suffer a low inflation since many countries store those dollars, but the moment this changes and countries decide they want to exchange their dollars for something tangible then inflation will come to the US at an alarming rate and as such the price of bitcoin will be affected positively since it will be one of the few currencies able to outpace the inflation of the dollar.

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August 17, 2018, 07:14:33 PM
 #19

This would not be the period of the discussion but as we can see different value from commodities that serves as a good asset for future purposes, that time to time there are changes of values depending on the economic process that may lead to upgrade or downgrade of economy. The negative effect that crypto currency will receive from national currencies is bad if a certain country will implement banning of crypto currency. As i know crypto is a virtual currency even thou it decreases it's price it will be dependent to fiat since we can not use crypto in reality if there is no conversion to fiat.  

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August 18, 2018, 09:15:28 AM
 #20

as per title how you recon the market is affected by individuals in countries like turkey, venesuella, brasil, argentina, russia, china, india (etc) which currently experience major currency devaluations against the dollar? normally it would be rather common practice to hold dollars as a hedge against the central bank's fiat denominations. though in countries like india they prefer gold. so now that an alternative is present how much buying pressure would it create to perhaps affect the bitcoin trend?
The main market pair is BTC/USD so the devaluation in those countries does not affect bitcoin too much, it is obvious that in those countries there is a market for bitcoin and their local currency but most of the time the exchange rate is very similar to the BTC/USD exchange rate.

However and inflation of the dollar is going to have a massive influence in the price of bitcoin in the future, right now the US is having the best of both worlds they can print as much currency as they want and still suffer a low inflation since many countries store those dollars, but the moment this changes and countries decide they want to exchange their dollars for something tangible then inflation will come to the US at an alarming rate and as such the price of bitcoin will be affected positively since it will be one of the few currencies able to outpace the inflation of the dollar.
what you are saying correlates with mike maloney whom i follow up. he also claims that before the usd avalanche inflation we're going to experience massive deflation first - that would be an indicator to jump the ship.

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