Okay, genius, let me quickly explain it to you because this seems to be a problem for you. Bitcoin, the digital disruptor, and the US Dollar, the embodiment of fiat money, frequently but not always have an antagonistic relationship. The world has a high level of faith in the traditional banking system and, by extension, fiat currency when the USD is strengthening. Why? Considering it to be the safest bet, everyone is turning back to the good ol' dollar.
When that occurs, overseas investors can see dollar-priced assets like Bitcoin as being more expensive. They leave, which decreases demand and consequently lowers the price of BTC. Got it? And to be honest, anyone with even a basic understanding of how financial markets operate would realise this. Then again, it's better late than never, right?
Topic: Bitcoin vs. the Dollar (Traditional Money vs. Digital Innovation) - page 2. (Read 375 times)
August 17, 2023, 08:02:50 AM
August 17, 2023, 03:56:43 AM
My opinion is this, Dollar has not been rising, for all i know, no fiat currency has been rising, fiat has one major challenge and that challenge is inflation, the ability of the government to print fiat money at will makes fiat look like they are designed to loss value over time, in fact, not that it looks like, fiat are actually designed to lose value over time, so i honestly do not see how dollar is rising when its purchasing power is getting lower and lower.
Central banks print more money so their fiat currencies have increasing inflation with time. As consequence of inflation, no doubt that purchasing powers for their fiat currencies decrease with time. Inflation and purchasing power have inverse correlations.Quote
Bitcoin on the other hand is not stable currency, the volatility in the price of bitcoin makes it a normal thing for the currency to go down in price when demand is less, and go up in price when demand is high, and also, the limited supply of bitcoin also supports this, so overtime, Bitcoin is designed to keep growing both in price and purchasing power, but like ive said before, it a norm for price to go down when demand is low, and price go high when demand is high, this is also how money is made from bitcoin trading.
Bitcoin is inflationary too but because its total supply was set in 2009 by Satoshi Nakamoto, people have clear information about Bitcoin total supply which can not be changed. With time, they know one more thing, more bitcoins will be lost by lack of carefulness from people who don't backup their wallets, seeds, private keys well enough.How is the 21 million Bitcoin Cap defined and enforced?
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August 17, 2023, 01:27:49 AM
My question is this, why does the value of BTC decrease when the value of the dollar rises?
I dont live in the United States, so i possibly might be wrong, so just correct me if at all, i am wrong.My opinion is this, Dollar has not been rising, for all i know, no fiat currency has been rising, fiat has one major challenge and that challenge is inflation, the ability of the government to print fiat money at will makes fiat look like they are designed to loss value over time, in fact, not that it looks like, fiat are actually designed to lose value over time, so i honestly do not see how dollar is rising when its purchasing power is getting lower and lower.
Bitcoin on the other hand is not stable currency, the volatility in the price of bitcoin makes it a normal thing for the currency to go down in price when demand is less, and go up in price when demand is high, and also, the limited supply of bitcoin also supports this, so overtime, Bitcoin is designed to keep growing both in price and purchasing power, but like ive said before, it a norm for price to go down when demand is low, and price go high when demand is high, this is also how money is made from bitcoin trading.
August 17, 2023, 12:21:31 AM
The trigger for an increase in the dollar can be caused by several factors because in the world of international trade, the dollar is the official currency recognized by the state. While bitcoin depends on the amount of demand and supply. So the impact occurs because globally Bitcoin is traded in dollars.
If we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.
Puchasing power of US. dollar over timeIf we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.
The article clearly presents fact and comparisons as well as insights about purchasing power of US dollar. The trend is downward that means we have to spend more $ to buy a same thing over time.
In contrast, if it is Bitcoin, since 2009, with 1 bitcoin we will be able to buy more things because both value, price and purchasing power of US dollar increase a lot. In addition, the adoption for Bitcoin has been bigger so we can use bitcoin to buy many things directly.
From the explanation listed in the table in the article that you shared, it is clear how the dollar compares to the value of bitcoin. It means that in 2020, the purchasing power of 1 BTC can get thousands of McDonald's coffee if I am not wrong in mathematics.
It's no wonder that the frame created makes people easily fooled by interesting facts between the dollar and bitcoin.
August 16, 2023, 11:57:35 AM
Between Bitcoin and USD, their correlation operates inversely. In simpler terms, when investors flock to a strengthening asset, let's say the asset gaining strength is USD, the interest in alternative assets like Bitcoin tends to decrease. This triggers selling pressure that significantly impacts prices. Naturally, investors have to decide which asset is more stable, meaning the one that's gaining strength at that time.
However, in certain instances of Bitcoin's price movement, things don't always unfold as anticipated. For instance, during a global economic crisis, people seek out a Safe Haven Asset. As of now, I would place gold at the top tier of Safe Haven Assets. Consequently, both USD and BTC might experience panicked selling.
I think that it is not entirely correct to compare dollar and bitcoin, because it have a lot of serious differences. For example, the well-known limited and endless emissions. Also, although bitcoin was conceived as a means of exchange (electronic money), at the current moment (most likely in the future it will be the same) it is a means of accumulation (wealth, value), while the dollar is a means of exchange (traditional money) .However, in certain instances of Bitcoin's price movement, things don't always unfold as anticipated. For instance, during a global economic crisis, people seek out a Safe Haven Asset. As of now, I would place gold at the top tier of Safe Haven Assets. Consequently, both USD and BTC might experience panicked selling.
There is a trend when investors, under market pressure, change their behavior strategy from investing in btc and usd, but most often, none of them plans to keep their investments in dollars for a long time, because this devalues their wealth due to inflation. That is, the dollar is a safe haven during a market storm, after which investors still rush to the means of accumulation (btc, gold, etc.).
Investors don't necessarily choose the asset that is gaining more power. It may be enough for them that the asset weakens less compared to other assets in order to avoid losses.
Gold has traditionally been considered a safe-haven asset, but now there are alternatives in the form of digital gold. Trends change and investors may switch to new forms of assets.
August 16, 2023, 11:40:43 AM
Op Bitcoin and Dollar are not organization but Currencies please use the correct words. This discussion will not be different from others which we have discussed before. Okay let me put it in this way. Bitcoin is the Messiah that came to save mankind from the financial bondage and bitcoin did not come to destroy the fiat dollar who has been assigned to use all goods and services in the world. Bitcoin came to support the Fiat Currency to do well. Bitcoin can't be use physical and it is use only digitally so if you want to use fiat and you have BTC, you must convert it or sell it with p2p so as you said, BTC and dollar (any other fiat currencies) are moving simultaneously.
August 16, 2023, 11:18:33 AM
The Bitcoin system is quite different from dollars' hence cannot be said to be interconnected. It's like saying the human & robot brains are interconnected. Both are fundamentally/systematically different and incompatible. It can only become interconnected if you could make them compatible by creating a decentralized dollar that utilizes the Bitcoin blockchain/system or by creating fake Bitcoin that's like the dollar. Besides, Bitcoin is way superior to the dollar. Both should never be allow to mingle together unless the dollar is ready to change for good. Bitcoin becoming like the dollar is not an option for me. It will remain decentralized and superior to the dollar, and no one can hijack it.
In regards to why the price tend to be inversely proportional to the other, it's simply the principle of demand & supply. Once one has higher demand than the other, its price may be allowed to increase.
In regards to why the price tend to be inversely proportional to the other, it's simply the principle of demand & supply. Once one has higher demand than the other, its price may be allowed to increase.
August 16, 2023, 08:23:00 AM
The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change.
How dollar depreciate over a period of time
https://twitter.com/BitcoinMagazine/status/1691536550864035841?t=xIDn_5cH7mgUtB3aqSDWzg&s=19
We can see their relationship from above illustration how fiat will always reduce in value over time, bitcoin will never do that, instead it increases with time when we hold, knowing this is one of the vital reasons why so many people have developed a common interest in bitcoin because they want to have a secured future in their financial economy with bitcoin which will not be affected by inflation and economy losses as we have in fiat system.
My question is this, why does the value of BTC decrease when the value of the dollar rises?
Bitcoin does not decreases in value, fiat does, bitcoin is only volatile and rises and fall in which over every time it go dip there's always an open means to rise back, but fiat loose value with time
August 16, 2023, 08:11:09 AM
The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape.My question is this, why does the value of BTC decrease when the value of the dollar rises?
Your words are contradictory, as the first statement contradicts the last. If Bitcoin are two separate forces, how are they interconnected? Also, Bitcoin is still in its early days and we have a market capacity less than Windows Apple, silver, such a market and this size of investment will not change the economic equation while we are talking about the US economy with an annual spending rate of more than a trillion dollars and a public debt of about 32 trillion dollars.Bitcoin is currently far from affecting the global economy, but if it reaches me 10 trillion and 20 trillion, then it will not be affected by the value of the dollar, but will affect it.
August 16, 2023, 08:03:02 AM
My question is this, why does the value of BTC decrease?
Does the price only goes down? Dude you need to understand that USD and Bitcoins are completely different entities and have different perspective. USD are particularly currency and it’s price goes up and down due to the country’s economy. Whereas Bitcoins are treated as an asset by majority of the people and it isn’t governed by any ruling body. Hence comparing both of them is basically useless. Digital innovation surely has an upper hand if you ask me over traditional money.
August 16, 2023, 06:29:35 AM
The trigger for an increase in the dollar can be caused by several factors because in the world of international trade, the dollar is the official currency recognized by the state. While bitcoin depends on the amount of demand and supply. So the impact occurs because globally Bitcoin is traded in dollars.
If we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.
Puchasing power of US. dollar over timeIf we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.
The article clearly presents fact and comparisons as well as insights about purchasing power of US dollar. The trend is downward that means we have to spend more $ to buy a same thing over time.
In contrast, if it is Bitcoin, since 2009, with 1 bitcoin we will be able to buy more things because both value, price and purchasing power of US dollar increase a lot. In addition, the adoption for Bitcoin has been bigger so we can use bitcoin to buy many things directly.
August 16, 2023, 05:58:10 AM
My question is this, why does the value of BTC decrease when the value of the dollar rises?
I don't know where you got this idea, as others have said there is no relation to the price of BTC to dollar.
BTC is just given a dollar value though as we have to "exchange" this digital currency to fiat. But if you can stay full BTC and in the future people are going to treat it as sound money then we could have other options, and the exchange could be even in your own local fiat=BTC.
August 16, 2023, 04:23:43 AM
The only relation is BTC value is quoted in USD value for example when we trade on exchange that is the only relation between USD and Bitcoin. In case if USD falls down to zero over night which may affect the price of BTC a bit or huge in short term due to the Market sentiment but BTC will start to rise again irrespective of USD's state.
August 16, 2023, 03:48:00 AM
You're a shallow thinker, there's no correlation between the rise of Bitcoin price will make Dollar price declining and vice versa. It was been expected, Bitcoin price will increase in the long run while Dollar value will decrease due to inflation.
If you think digital innovation is the main difference of traditional money, you need to touch the grass because mobile banking and digital fiat have been around before Bitcoin exist.
If you think digital innovation is the main difference of traditional money, you need to touch the grass because mobile banking and digital fiat have been around before Bitcoin exist.
August 16, 2023, 02:26:19 AM
Bitcoin value goes up or down in a chaotic manner, so it could be a coincidence. But there's a strong narrative that Bitcoin is a hedge against inflation, so if dollar is strengthening, there's no need in this function.
So far there was not a considerable influence on the condition of money, but economic conditions had the impact we see today. The rise and fall in the value of money does not have a big effect. But rising interest rates and world economic policies always have a big effect, we can see the FED. They ruined some Bitcoin moments. Besides, as long as users believe in the value of Bitcoin, I think Bitcoin will always be valuable.
August 16, 2023, 02:06:00 AM
My question is this, why does the value of BTC decrease when the value of the dollar rises?
The trigger for an increase in the dollar can be caused by several factors because in the world of international trade, the dollar is the official currency recognized by the state. While bitcoin depends on the amount of demand and supply. So the impact occurs because globally Bitcoin is traded in dollars.If we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.
August 15, 2023, 06:13:18 PM
The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape.
Dollar has been dominating the global economy since WW2. Bitcoin these days is insignificant compared to USD - it has a tiny fraction of its marketcap and even a tinier fraction of transactions.
These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age.
Financial institutions are not tied to USD. They could operate with Bitcoin if there was demand. Crypto exchanges are financial institutions too. And Bitcoin is not a digital revolution. US dollar has been digital for quite a while.
The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?
Bitcoin value goes up or down in a chaotic manner, so it could be a coincidence. But there's a strong narrative that Bitcoin is a hedge against inflation, so if dollar is strengthening, there's no need in this function.
August 15, 2023, 07:36:33 AM
Both are different entities that have their own quantity demanded and supplied. Granted, a few percent of traders are in this pair, but it should be noted that volatility in the value of the dollar can be regulated by government policy intervention.
The last few days, dollar to my fiat exchange rate has increased, but that hasn't been able to change the bitcoin trend to bearish.
The last few days, dollar to my fiat exchange rate has increased, but that hasn't been able to change the bitcoin trend to bearish.
August 15, 2023, 06:56:15 AM
the dollar is not only affected by bitcoin transactions, even without bitcoin the dollar has its own legs, as an international standard currency, it is different with bitcoin at this time, when the dollar rises, then when bitcoin transactions form a consolidation area then the price of bitcoin automatically decreases, but what we know that bitcoin price formation is purely from the value of buying and selling, therefore I don't think there is a significant influence between the two
I don't think the dollar is ever affected by bitcoin transactions, as Bitcoin has nothing to do with dollar value control. Bitcoin is a traded currency, and its price is mostly calculated by the dollar. But the price ups and downs of Bitcoin do not define how the dollar can be valued. I guess the dollar's value is most often determined by how high inflation hits it or how well they can resist it, and a strong economy also contributes to its value. While Bitcoin's value and price largely depend on demand,
August 15, 2023, 06:07:45 AM
Bitcoin vs US dollar correlation.
The correlation is sinusoidal with time and it isn't always negative or positive so statement about its correlation today will not be correct in future when it changes from negative to positive and vice versa.
I stopped watching too many indicators and correlations when I realized that Bitcoin value is not correlated with US dollar, gold, SP500 etc. Its value comes from its blockchain, protocol and decentralization, no censorship, very strong network against 51% attacks and more.
The correlation is sinusoidal with time and it isn't always negative or positive so statement about its correlation today will not be correct in future when it changes from negative to positive and vice versa.
I stopped watching too many indicators and correlations when I realized that Bitcoin value is not correlated with US dollar, gold, SP500 etc. Its value comes from its blockchain, protocol and decentralization, no censorship, very strong network against 51% attacks and more.
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