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Author Topic: Why the currency wars are likely to bring the bitcoin under spot light  (Read 535 times)
johnyj
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January 16, 2015, 06:52:30 AM
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http://blogs.marketwatch.com/cody/2015/01/15/why-the-currency-wars-are-likely-to-hit-the-stock-market/

"I often write about how we’re living in a time of escalating currency wars. The Swiss National Bank just used their counterweight trebuchet to launch a projectile into the currency markets as they announced that they will no longer peg their Swiss franc to the euro at a set rate.

It isn’t often you see a chart of the U.S. dollar versus any other currency down 13% in an hour. Such is the case today with the U.S. dollar versus the Swiss franc. This kind of sudden dislocation in major global currency exchanges present a major challenge to the status quo. It creates confusion and stock markets don’t like confusion. Remember that it isn’t the direction of currency moves that matter as much as the speed and magnitude in which changes in those moves happen. And today, these intraday currency charts look more like weekly charts than the 1-hour charts they actually are."

"One last thought — all this analysis of government fiat currency wars underscores why some folks believe Bitcoin is a long-term game-changer. $BTC up 22% today, which is, well, just a little bit more than the Swiss franc. "

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January 16, 2015, 07:28:57 AM
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The Swiss Shock today could have some interesting economic ramifications. I can't wait to see what happens.

Players in the race to the bottom (in particular the BOJ, the ECB, and until recently the Fed) should be thrilled by this move since it makes their jobs a little easier.

I don't see it having much effect on Bitcoin.

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January 16, 2015, 08:14:28 AM
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Swiss central bank obviously can not hold any more since next week ECB will start a new round of QE.

This sudden move hits many by surprise, just read that one new Zealand exchange wiped out due to sudden loss, and many people in east Europe taking Swiss franc loans (due to its negative interest) for housing immediately went underwater

But I guess something much bigger is going on, it is very unusual the central bank act directly without any warning or policy meeting sending out information. I remember in 2008, when foreign currency moved like crazy, the large banks were all having problem. Banks have been covering their problem with new printed money, but we never know what is happening behind the scene until there is a total disaster

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