Everything that has to do with fiat money will always be synonymous with having all registration and enough identification, between bitcoin and the dollar should not be put in competition, it is money, fiat and bitcoin are money, the fact that bitcoin be more Valued than fiat money itself is something that governments cannot control, much less banks, so these things are what make bitcoin different and always make money, that's why the constant bitcoin attack makes me Choose between bitcoin and dollar? I choose bitcoin.
Topic: Bitcoin and dollar (Read 315 times)
It should be noted that Bitcoin is a special cryptocurrency, and its volatility is often explained by many different factors, not just dollar value. The valuation of cryptocurrencies in dollars affects not only Bitcoin but also the entire crypto market. The value of a dollar exchange rate cryptocurrency will be calculated by dividing the value of that cryptocurrency by the dollar value at that time. So, if the dollar value increases, so will the value of the dollar exchange rate cryptocurrency, and vice versa. This can be explained by observing the investment in cryptocurrencies. For many investors, the dollar is still the standard currency and it is used to gauge the value of assets because of its stability. So, when the dollar increases in value, investors will tend to sell less cryptocurrencies and switch to invest in dollars or assets in general that are priced in dollars, leading to a decrease in the price of the currencies.
Well I am not in dollar using state so I can't really tell. But I believed it will affect it indirectly because the rising and falling of the dollar affect the fiat currency and bitcoin must be converted or changed to the fiat currency before spending. So if dollar comes down your country currency will rise and when dollar rise you country currency will comes down though all depends on the country's economic strength. If the country economy is weak the it will affect it badly.
Well, I strongly think that it depends on how you look at it, but we should know that everyone has their own perspective because they've got other factors to consider. For example, a person is living in a different country where dollar is not their used currency.
That said, I believe that Bitcoin and dollar isn't connect directly or indirectly. It's just that the US dollar is used as a conversion of bitcoin and other cryptocurrency. But anyway, I'm somehow confused whether my belief is right or wrong, nevertheless, please feel free to correct me.
Bitcoin is not pegged to the dollar. It mainly uses the USD as s refrrence point for its price to give the people a better impression of what bitcoin's value is at the moment, but that doesn't mean that the dollar's valuation is directly correlated to bitcoin's worth.
One good example that signifies this is when dollar plummetted to the ground last year. It experienced one of the worst inflations it has ever experienced in the past, and yet even though the public expected bitcoin to lose value during said timeframe, it pumped in value and continued to do so for a little while brfore stabilizing.
One good example that signifies this is when dollar plummetted to the ground last year. It experienced one of the worst inflations it has ever experienced in the past, and yet even though the public expected bitcoin to lose value during said timeframe, it pumped in value and continued to do so for a little while brfore stabilizing.
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
Or does the pricing of dollar value have no effect on Bitcoin
That's what you call Risk on and Risk off in the marketplace.
When the risk is on, people will tend to take their money from their investments which means the dollar will go higher and risk assets such as sticks o btc will go lower. When risk is off in the market, people are aggressive in the market where they buy risk assets. Conversely, dollar will go lower and bitcoin will go higher.
Another thing is interest rates, higher interest rates, bullish on dollar, bearish on bitcoin, and other coins especially those which are paired with USD/USDT.
Among other coins versus BTC, you can use BTC domination instead.
That's their market correlation, other than that, the market moves through liquidity to where willing buyers and seller reside their orders.
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
Cryptocurrencies are not valued using the dollarOr does the pricing of dollar value have no effect on Bitcoin
And this is a fact. It's no complicated formulas. To which ever you pair the BTC against, it's as simple as you measuring the values against another asset or currency.
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
In my opinion, it is obvious that over time, due to inflation, the dollar will always lose its position compared to bitcoin, since dollars will continue to print further and their number will only increase, and there will be a limited amount of bitcoin, only 21 million. Although now they say a lot that inflation has been slowed down, you understand that there is a level of inflation that is shown to us and a real one that we every time see how the prices of goods and services rise. Or does the pricing of dollar value have no effect on Bitcoin
I think when the value of the dollar goes down it will increase the demand for the price of bitcoin because people will see it as a safer way to store value there than devaluing the dollar, and obviously a depreciation of one dollar will have an impact on increasing the price of bitcoin, because for sure the demand will greatly increase all factors simultaneously simultaneously constant at the same time and vice versa.
However, on the downside, a decline in the dollar can also lead to a wider or global economic and financial crisis as more people will focus or prioritize their basic needs instead of investing including crypto or bitcoin due to lack of resources.
However, on the downside, a decline in the dollar can also lead to a wider or global economic and financial crisis as more people will focus or prioritize their basic needs instead of investing including crypto or bitcoin due to lack of resources.
Fiat currencies are also often valued in the USD. It's just used as a common point of reference because, given the US dominance in the world and the reliance of many countries on the USD reserves, it's presumed that most people are familiar with the value of dollar (they understand what sort of stuff can be afforded for $1, $15, $100, etc.), so it's it's convenient to measure value by using the price in the USD. However, the op is correct that the USD isn't actually completely stable and continues losing value. So Bitcoin costing $20k in 2017 and Bitcoin costing $20k in 2022 are two fairly different $20k. Adjusted for inflation, $20k in 2017 is around $24.5k now, actually. But considering that it's hard to account for this and also considering that the difference isn't huge over a small number of years, we just roll with it.
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
Or does the pricing of dollar value have no effect on Bitcoin
People usually use what they are familiar and comfortable with. Until it becomes more convenient to value everything in bitcoin, the dollar peg to the price will most likely remain. Largely because it's a quick estimate and the dollar itself is comparatively strong against other currencies. When bitcoin becomes less volatile and more widely used for payment, it is likely that people will shift to bitcoin in their valuation of other goods, services, and currencies, but this is unlikely to happen soon.
Let's say that it is indirectly affecting bitcoin's price. The factor that affects bitcoin price is its supply and demand and aside from that the news that circulates around the economy but its valuation through USD could have a bit of affection on it but barely felt.
So, by that means, it's really unpredictable and with too many factors that affects the price of bitcoin that revolves around its own bitcoin economy.
More or less, it's indirect. When USD weakens, bitcoin becomes more valuable but when the opposite happens bitcoin is affected negatively, it is an influence but it's not a direct impact so the relationship of bitcoin and USD isn't something we shouldn't worry too much.
Yeah, this is the summary that we can think of I guess. Remember that during the covid-19 pandemic started, most things are pretty low but then bitcoin has gone way up and did the opposite.So, by that means, it's really unpredictable and with too many factors that affects the price of bitcoin that revolves around its own bitcoin economy.
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
Cryptocurrencies are not valued using the dollarOr does the pricing of dollar value have no effect on Bitcoin
More or less, it's indirect. When USD weakens, bitcoin becomes more valuable but when the opposite happens bitcoin is affected negatively, it is an influence but it's not a direct impact so the relationship of bitcoin and USD isn't something we shouldn't worry too much.
it's important to note that the relationship between the US dollar and cryptocurrencies is complex and can be influenced by many factors, including demand and supply dynamics, market sentiment, and regulatory developments.
Meanwhile the simple answer to your query is Yes, Yes, fluctuations in the price of the US dollar can indirectly affect the price of Bitcoin and other cryptocurrencies, as many cryptocurrencies are priced in US dollars on most exchanges.
Meanwhile the simple answer to your query is Yes, Yes, fluctuations in the price of the US dollar can indirectly affect the price of Bitcoin and other cryptocurrencies, as many cryptocurrencies are priced in US dollars on most exchanges.
The price of Bitcoin and other cryptocurrencies can be influenced by many factors, including the value of the dollar. Fluctuations in the dollar's value can indirectly affect the price of Bitcoin, as the dollar is often used as a benchmark for other currencies and assets. However, it is important to note that the price of Bitcoin is also influenced by a wide range of other factors, such as supply and demand, market sentiment, and regulatory developments. Therefore, it is difficult to predict exactly how changes in the dollar's value will impact the price of Bitcoin.
Well I am not in dollar using state so I can't really tell. But I believed it will affect it indirectly because the rising and falling of the dollar affect the fiat currency and bitcoin must be converted or changed to the fiat currency before spending. So if dollar comes down your country currency will rise and when dollar rise you country currency will comes down though all depends on the country's economic strength. If the country economy is weak the it will affect it badly.
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
Cryptocurrencies are not valued using the dollar, but since USD is the currency that the whole world uses to show the value of things if they are to be represented internationally, so do the exchanges and the platforms for cryptocurrencies including Bitcoin. So basically, Bitcoin isn't directly or indirectly connected with the dollar, but it is just that its value is counted with it.Or does the pricing of dollar value have no effect on Bitcoin
So, as others already said, if USD devalues, that will only decrease its purchasing power and that wouldn't basically bring a significant change in the price of Bitcoin like it won't go to $29k from $28k or so, but it will need one to have more USD to buy the same amount of Bitcoin that one could buy with less USD earlier before the devaluation.
It looks like dollar has already been oversold against major currencies like GBP, EUR, CAD and AUD and BTC too.
We may see some retracement before BTC gets back to its true value in terms of Mining:Rewards ratio in terms of USD (it's still not the best if I'm not wrong). Movements in dollar index used to communicate with the price of BTC against USD, but since it has already been under accumulation for a very long time, it broke its rhythm with DXY and now going its own way. I'm also noticing that only BTC and ETH are moving great, and alts are still waiting to boost which means that most of the money is being circulated in BTC and ETH only.
We may see some retracement before BTC gets back to its true value in terms of Mining:Rewards ratio in terms of USD (it's still not the best if I'm not wrong). Movements in dollar index used to communicate with the price of BTC against USD, but since it has already been under accumulation for a very long time, it broke its rhythm with DXY and now going its own way. I'm also noticing that only BTC and ETH are moving great, and alts are still waiting to boost which means that most of the money is being circulated in BTC and ETH only.
Since Bitcoin is frequently exchanged against the dollar on cryptocurrency exchanges, fluctuations in the value of the US dollar can have an impact on the price of Bitcoin both directly and indirectly. However, other elements, like as macroeconomic events, technological improvements, changes in investor attitude, and regulatory changes, can also have an impact on the price of Bitcoin.
Yes, I think the fluctuations in the value of dollar will affect the price of Bitcoin in one way or another. If the dollar weakens, it means a certain amount of dollars couldn't anymore buy the same amount of Bitcoin that it used to when it was still stronger. Bitcoin could be considered as a commodity. So just like eggs, vegetables, cereals, bread, and other commodities, the price of Satoshis also rise whenever the value of dollar falls. But of course Bitcoin has also its supply and demand side.
Fluctuations of dollar will affect those merchants purchasing bitcoin with fiat currency, it's exchange rate will be place high compare to the bear or bull season of Bitcoin. Dollar is not firm in a corner, it's value keeps fluctuating and the same thing applies to Bitcoin. Good trading rate is emphasis inother to help the merchants and businesses make significant profits. Bitcoin is volatile in the market, we can't compare it to fiat currency like dollar. Ofcourse it's a strong currency from a developed country so it chances of purchasing bitcoin is steady place high point. 
Most crypto currencies are valued using dollar including Bitcoin .Does this mean that fluctuations in the price of dollar will affect the price of Bitcoin directly or indirectly.since most other currencies(not crypto) still are priced using dollar expecially during exchange.
Or does the pricing of dollar value have no effect on Bitcoin
Yes, Bitcoin is value with respect to dollar, and a fluctuation in the price of dollar will so much affect the value or worth of Bitcoin in any nation, because I have experienced such when my country's local currency fell to the U.S dollar and that made the price of Bitcoin higher than before. Because I can remember when the price of my local currency (Naira) was #500 per $1, and back then 1 Bitcoin which was $30k was equal to over #15million naira, unlike now that the price of dollar has risen due to economic challenge, and as such resulted to the price of my local currency falling to #700 per $1, while 1 BTC now over #21 million naira (i.e 6million naira extra).Or does the pricing of dollar value have no effect on Bitcoin
Secondly, Dollar is used as a major trading pair simply because it is a currency generally accepted for International trade/business, as an official currency of Earth's most powerful country of the world
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