Topic: American dollar climbs most in 10 months while Bitcoin stagnates (Read 3137 times)

USD being the world reserve currency is likely what he meant...and it's one big game of dominoes. If we fall, it all falls - unless there's an alternative in place, such as bitcoin

What do you mean?

We should all be worried about this.. American dollar drops, we will all drop..

https://www.youtube.com/watch?v=4ECi6WJpbzE

After this, I don't trust the Fed as far as I can throw it...or anyone else in this parasitic government, its crony media whores, the corporate bankers, Wall St or politicians.

I'm pro Bitcoin. All the way.

hahaa..good one.!

I would connect us dollar to gold but i won't connect dollar to btc, that's for sure.

The outcome is Japan still haven't solve their economic problems after 2 decades.

US dollar = Proof of Violence   

Japan is trying to depreciate their currency because it is naturally appreciating in the currency markets. If their currency becomes too valuable then their exporters will have a disadvantage and their economy will suffer

Correct. Dollar is the major player still.

did we forget to mention that the japanese are printing their money like crazy to depreciate their currency compared to the dollar in an attempt to make their radioactive exports more competitive priced

omg, they put pile of stones on their money.

The $ in it's current form has only existed since 1971. It has struggled a bit since detaching itself from that barbarous relic.

The dollar will stand the test of time, but it will lose value for ever.  Inflation does not always end in disaster

Bitcoin was not ment to be real currency only.
It was ment to be a system which was not able to alter anymore.
A system which is able to live forever because it is decentralized.
People value such a system so much, that they see it as money which you can use as a currency.
I don't use bitcoin as a currency, just like I don't use gold as a currency.

Like all fiat currencies, the USD has been losing real value against real world goods/commodities since it was created.  That can't happen forever.  Eventually something has to give.

And your point? Silver has been going down. The euro's value changes. Oil prices changes. So what that it just so happens that another market changes slightly. I'm not sure how this is directly related to bitcoin in any fashion.

Dollar has been going up and down ever since, but it is still here right? Dollar has been proven to withstand time, I hope bitcoin does that too.

The FED plans to raise interest rates in order to combat inflation potential. The FED accomplishes this by buying and selling bonds. To raise rates the FED will primarily sell off bonds. The relative value of currency rests upon real interest rates. Therefore selling a bond with a fixed coupon increases supply, decreases cost, and increases ROI for that bond (a low risk asset.) Since ROI for low risk assets increases, the ROI for higher risk assets must increase in order to remain competitive. Thus making the USD more valuable by increasing real ROI for USD, until... Oh, wait! Inflation, the entire reason the FED would raise rates to begin with.

Real rates have been low, and will either continue to remain low, go negative, or increase. FED President Yellen is more likely than not going to underestimate the recovery and lead the U.S. into a period of inflation, which puts relative downward pressure on real rates. However she will counteract this inflation by increasing real rates. If real rates are low, Bitcoin goes up - which is probably one of the reasons it has been able to maintain such a high valuation. Aka a Bitcoin bubble. When real rates increase, Bitcoin goes down. However the real rate rise in this case would precede another FED-induced recession, which would drive real rates down yet again. It's a lagged game.

The less the U.S. looks like they'll enter a sustained long-term period of growth, the higher the present value of Bitcoin as an investment currency.

Bitcoin has not stagnated, it has been evolving to meet the demands of higher valuations. This is not instantaneous. Bitcoin should be understood as a payment processor first and foremost. Bitcoin is not reasonably capable of transacting volumes on par with credit card companies, yet, in terms of both number of transactions and value of transactions. All of these developments in the Bitcoin community are serving to justify Bitcoin's $470 price point not as an investment currency, but as a payment processor and a real currency as Bitcoin was meant to be. When that $470 price is justified we'll start seeing consistent long term gains. Or another bubble and crash. Then we can have this conversation all over again with different prices and an economy in tatters.

Exactly, they started with a gold supply and a country with a reputation second to none among the world for being a creditor and financially sound.

They usurped a government used the hardworking people to back their debt instrument and systematically leached over 99% of  said peoples money. Worse yet they use force to make you use their debt instrument.

Conversely, bitcoin started with no value and has risen strongly. In short why are they even talking. They have no moral high ground. NONE.