US Dollar Efect on the world and Crypto

[nyia]

Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.

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[coinplus]

It depends on the usage of it as well. If dollar gets stronger and at the same time invested on third world countries it wold improve those countries much better whereas when it is losing value and getting withdrawn from those countries it kills the economy like it did in Turkey.

If they are smart they could potentially invest it into something that would yield profit even after the dollar is withdrawn but if not than they would have to face the consequences like they are right now. All in all the power of dollar depends on how you use it, if you use it wisely than it can really build a whole country with enough amount of investment and make it go from third world country to second world country quickly in 4-5 years.

Nevertheless, if you do not use it smartly than it would only make your inevitable economic crisis postpone for couple years until its withdrawn and than you will have a huge sudden fall just like Turkey is having right now.

[1Referee]

Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.

The US dollar is the base currency of the world just like how Bitcoin is the base currency of the crypto world. In times of uncertainties capital gets parked in that what is globally accepted to be a safe haven, which in the legacy world is either the US dollar or Gold. It makes sense as well, especially with how most of the money in the world isn't being used as money, but as speculative vehicle.

I'm not sure to what degree it is influencing crypto currencies, but it might play a role of importance with how we have more institutional presence than ever before. On the other hand, people need to understand how the crypto market cycles through various phases, and as what happened multiple times already, a bear market like we experience right now is pretty common and organically results in long periods of stability and stagnation.

One spark is enough to get this market up and running again. Right when people tend to get too comfortable with the market, it pulls off something that brings back fear/greed/uncertainties, etc.

[Sifon]

The US Dollar is more a common denominator for most currencies. A lot of countries of the world have their reserves in USD, so a USD that is healthy which see the reserves of these equally surging and vice versa. It's effect on crypto is also considerable as withdrawals into fiats are usually in USD and a depreciating dollar will reduce the value of the crypto exchanged.

[JustinLOX]

It can't be said for sure cause crypto is a decentralised coin. But the US Dollar is a global currency, so the whole market price might affect on crypto too. The downward price might reduce the value of crypto, or it has the possibility to go totally reverse. So if might affect the crypto, but not sure which way.

[Gaff]

Both crypto and US dollar had their own economy, although there's a fluctuations happening with bitcoin nowadays we only see what's tye final amount of fiat equivalent from btc to dollar rate. If you sold your btc to fiat currency exchange, then the final value relies with fiat economy now. Eventhough you have sold hundreds of btc, the whole thing there was based on current US dollar rate and when the dollar fluctuates it's price it would really affects the total amount sold.

[wahyu wida]

The US Dollar is more a common denominator for most currencies. A lot of countries of the world have their reserves in USD, so a USD that is healthy which see the reserves of these equally surging and vice versa. It's effect on crypto is also considerable as withdrawals into fiats are usually in USD and a depreciating dollar will reduce the value of the crypto exchanged.

right, but between economics and crypto i don't think it has a significant effect. we know bitcoiner in the world is still minimal, so it is still difficult to influence the global economy

[Ruben Ramsey]

Us dollar has made a position in the world that is a dominant one. A lot of country keep their reserve in USD. Besides, the withdrawal of cryptocurrency can only be done in USD. So,considering the fact that the fall of USD's price will also affect the Crypto, it  can be said that the USD has a huge influence in the real world and on crypto currency.

[Ingrid Bailey]

US Dollar is the most dominant currency of the world. Its strengthening will obviously have an impact on both fiat and crypto currency. Not sure to what extent it can influence the crypto currency though.

[Indrawan77]

Dollar create a big impact for the world economic and it hit hard several countries when the dollar got big movement, but it wont do any direct damage to the crypto, because crypto and fiat market are different, but it will impact on the ability of people to buy and sell crypto, as far as I know the movement of dollar either is big or small not yet got big impact for crypto

[ColemanGentry]

It depends on the usage of it as well. If dollar gets stronger and at the same time invested on third world countries it would improve those countries much better. If you don't use it smartly than it would only make your inevitable economic crisis postpone for couple years.

[kokobaba880]

The value of crypto is more than US dollar and it is seen that when you have an International currency that affects many other currencies and Us dollar is more powerful so that's why it affects many other currencies and it affect the whole world because the world trade and payment are in dollar so it influence things and crypto is also good we use it for payment in these days.

[arbifahrozy]

I am in line with your opinion, and I think that as has happened before the rise in dollar prices has affected the crypto market. and of course this phase has an impact on developing countries, it will be difficult to accept the existence of crypro in their country, such as developing countries in Southeast Asia.

[Valer4ik]

In this regard, it would be interesting to understand how other stable Coyns (TrueUSD and DAI) use the emission algorithm.

 

 Here in normal cryptocurrencies is usually understandable. PoW-coins are strictly limited by the increasing complexity of mining, and some, like the cue-ball, are also limited by the maximum emission.

 

For many PoS-coins, the quantity is initially spelled out in the blockchain, they are released to the market immediately and additional “printing” is not possible.

Some PoS coins even have a gradual “burning” algorithm.

 

And in my opinion Tether is released in such quantity in what its founders and their friends from Bitfinex wanted. What opens the scope for market manipulation in a wide range.

 

How is it with other stable coyins? Is their emission scheme more transparent?

[Renaldi blackspadeteam]

yes of course, the increase in the dollar price has an effect on the crypto currency, and also on other countries, so if the prediction of the dollar price will continue to increase until the end of the year, if the dollar price increase is insignificant it might not matter, but if the dollar price continues to increase significantly it might be dangerous for developing countries I think inflation will happen again ... oh I'm afraid to hear this news

[oppasong]

if the US dollar rises inevitably greatly influences the digital currency, for example, what is happening now with the dollar rising in crypto prices is immediately down, this certainly has a link between the dollar and crypto.

[bestpikka]

the dollar price increase is very influential on other currencies and the economy of a country because the dollar is a benchmark for the world currency in my opinion, I also saw a few days ago as the dollar's rise greatly affected the altcoin and made the altcoin price chaotic or down, the conclusion is that the dollar is very influential on the altcoin exchange rate.

[trecore4]

Mostly other currencies go down in their value when compared with the market of USD. Most of the developing and underdeveloped countries are paired with the USD and then valued in the share market and even stocks. With the rising demand of US supporting countries and their businesses its been straight forward maths that USD always carry forwards itself as camped to other currencies. Now there is also major impact of the the national economics itself which affects their own currencies valuations. For example, India, where Rupee is sliding down the road each day due to improper management of the Indian economics and thus we see costly rupee as compared to the USD.

[JuneTaro]

I think that can dollar dollar has the impact on bitcoin but it is not sure, that  it will affect by what  way. For dollar is a currency international international and play an  important section in the main platform, so it can effect

[naidray]

if the US dollar rises inevitably greatly influences the digital currency, for example, what is happening now with the dollar rising in crypto prices is immediately down, this certainly has a link between the dollar and crypto.

There is no link mate, sometimes, people like you just always want to find a link that is basically not there and just fill it up out of assumption. The crypto space has been tanking downwards even before dollar started gaining any strength and in such case, I wonder how you were able to get your own deduction. In fact, with the strengthening of the USD, crypto has been a little bit stable for a while now, so what do you have to say about that ?

This is just a space developing on its own, and it has nothing to do with the fiat world and only places where there would be an effect would be the less developed and developing countries, as that would affect their own economy and most especially for those who rely on it for importation most of the time, which would cause inflation as their own currency weakens.

[ss890]

It may affect the other nations currencies which are in fiat form but not the crypto currencies as such I believe. I mean look at the crypto market, its technology used behind it and the mechanism of working, everything is very much different for them as compared to the fiat currencies. US dollar is just being used as unit of measure for the crypto currencies and I dont think there is any impact of its value over it. What can impact the crypto coins is the stocks getting converted to the crypto, forex falling, big exchanger companies making investment into crypto etc etc. But just because US dollar value changes then it will impact on it is wrong practically.

[Whosdaddy]

yes of course, the increase in the dollar price has an effect on the crypto currency, and also on other countries, so if the prediction of the dollar price will continue to increase until the end of the year, if the dollar price increase is insignificant it might not matter, but if the dollar price continues to increase significantly it might be dangerous for developing countries I think inflation will happen again ... oh I'm afraid to hear this news

How does it have any effect on cryptocurrency? Cryptocurrency is not directly tied to fiat and it is strictly an ecosystem on its own. If there is anything tied to USD, and would get it affected, that would be most countries that rely on the usage of USD when it comes to international transactions most of the time.

You have said it already in your last statement, which this is something that can only be basically dangerous for developing countries as in a way, their own currency will fall in such case as a result of weakness, against the dollar, and in that case, it would affect a lot when it comes to inflation.

[arnaudel98]

Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.

Since dollars is global currency and the country's economy depends on it even cryptocurrencies to so the effect will be positive and negative both.

[okala]

USD has a very high significant infect on bitcoin and others world currency.  We have see this on every continent on how dollars is been hold I a very high value.  I believe that this happened becouse of how good American economy is and they contributions to societal developments. Bitcoin will also in one day become the world most used currency.

[Wete]

It cannot be denied that the US Dollar is a major force in the world. Strengthening US Dollar clearly affects countries in the world. In my country the strengthening of the US Dollar will have a positive impact on people who play / do business in digital currency, this is very good news.

[Maoper602]

USD is considered to be the base or common currency globally. And many countries economy depends on it too. But the effect it falls on cryptocurrency is quite uncertain as cryptocurrency value does not depend on fiat currency. Bitcoin is also considered as the base of cryptocurrency eco-system.

[Mirendabaen212]

US dollar has a great power over the worlds economy. When the US dollar is affected it is expected that the world is going to get hit by a storm. But it will be interesting to how it will affect the crypto market as most of the exchanges work through USD.

[Ibeild441]

Economy of a lot of country depends on US dollar. Any effect on this currency can create a huge fudge in the world. But what it can do to crypto market is not very clear to me.

[Edoanidd551]

The transference of FIAT currency might have a huge impact on the developing countries. Crypto prices may increase or decreases due to the price of present dollar prices but it will have less reaching effect than the changes in the dollar,

[Bitfling]

Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.

US Dollar increasing againts others currency in the world because The Fed plan to increase their interest rate and its affecting to others commodities price too. I dont think its affecting to cryptocurrency price because its different market and crypto price drop recently because many people panic with fake news and selling their coin with cheap price

[centimentalking]

Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.

Increase the rate of dollars can gives more profit in bitcoins even the price of bitcoin fall but with dollars we gain some profit. Where it can disturb the economy i don't think its important for bitcoin we should focus on economy.

[holtzmann]

US Dollar dominates over other currencies and is admitted as a world’s reserve currency. Of course, it has a huge effect on the world economy. The amount of USD credits for developing countries increases and dollar is strengthening. Dollar impacts on crypto as well, as it's directly related to the ability to buy and sell crypto. This is the major currency people buy their crypto with.

[andriarto]

Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.

US Dollar increasing againts others currency in the world because The Fed plan to increase their interest rate and its affecting to others commodities price too. I dont think its affecting to cryptocurrency price because its different market and crypto price drop recently because many people panic with fake news and selling their coin with cheap price

Broadly speaking, increase in dollar prices does not affect cryptocurrency. but on the one hand, for those who want to exchange fiat other than usd, of course the amount is bigger

[bitbunnny]

The movements of US dollar affect other fiat currencies, that is for sure.
But to my opinion it's not influencing Bitcoin and other cryptocurrencies because they are decentralized system not depending on any fiat currency and they are not part of any formal economic system.
The influence could be indirect because in some cases the fluctuation of dollar could influence the ability of some users to buy or not to buy Bitcoin but this is the side effect that is not connected directly with crypto market.

[yitzjoe]

every investment we make on crypto is certainly indirectly calculating its value against the currency commonly used throughout the world, namely the dollar. therefore the strengthening of the dollar will affect the price of crypto. more clearly when there is a price change in a tether that is so large, bitcoin and altcoin will experience a serious correction.
the role of fiat in particular dollars has a positive effect on crypto prices

[spongegar]

I mean the us dollar is an almost universally globally ised currency. Evdrything it touched will be tied in to their fate except crypto currency. Crypto currency may seem down but it is actually on a price adjustment. But outside that crypto currency is still strong. Now, the dollar is weak so is the economy and the stock market.