Topic: Bitcoin vs. the Dollar (Traditional Money vs. Digital Innovation) - page 3. (Read 375 times)
August 15, 2023, 02:34:23 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
August 15, 2023, 01:55:21 AM
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My question is this, why does the value of BTC decrease when the value of the dollar rises?
My question is this, why does the value of BTC decrease when the value of the dollar rises?
The value of Bitcoin will only decrease if market demand decreases or the number of sales is higher than purchases, whether due to economic factors or other things. It's the same as Bitcoin, in fact if the market demand for USD decreases, the USD value will also decrease accordingly and if market demand increases the value will also increase, even though it's actually more complex, we can simplify it like that.
But if so, why has Bitcoin's value increased so significantly compared to USD in recent years? because people understand that the potential of Bitcoin can revolutionize global financial markets in the future and buying Bitcoin early can provide high profit potential in the future, so even though many people say negative speculation or things about Bitcoin, there are still many people who hold it because of its potential.
August 15, 2023, 01:45:27 AM
These two organizations stand for opposing ideals—
Bitcoin is not an organization but us a network.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.
There is no conflict between both. The USD has been around for multiple decades now, Bitcoin is new and serves as an alternative currency moslty used as a hedge fund and for investments.My question is this, why does the value of BTC decrease when the value of the dollar rises?
Bitcoin is priced againts the US dollar so if it gets stronger that increases he purchasing power, meaning you can buy more bitcoins with it.Same thing happens in your local markets. When inflation grows, prices of commodities increases and when it reduces so does the prices of commodities.
The changes in reference to Bitcoin price is not significant.
August 15, 2023, 01:43:28 AM
My question is this, why does the value of BTC decrease when the value of the dollar rises?
You are confusing causation with correlation.
1- Bitcoin often trades in the opposite way to DXY (not to the dollar, because value of the dollar goes down every day, it never goes up). You can buy 50% less stuff than 20 years ago. Thats the dolar purchasing power chart:
2- DXY pumps when there is a panic in the market (no matter what it is caused by) and this causes investors to migrate from riskier assets to safer ones. therefore, they migrate from exotic fiat currencies to the dollar, sell shares on foreign markets, sell bitcoin. Thats the migration from risky assets to save assets not the migration from old money to new money.
August 15, 2023, 01:41:31 AM
Think of Bitcoin like a financial superhero that comes to the rescue when the value of the dollar takes a hit. When the dollar's value goes down, Bitcoin tends to rise in value. This is because Bitcoin is like a treasure chest with only 21 million coins inside, making it really rare and special. So, when inflation shows up, people find Bitcoin super attractive.
But since it can get quite volatile in terms of price, when folks feel pretty good about the dollar, they might ditch some of their Bitcoin for less volatile stuff. That can make the price of Bitcoin take a dip. The Bitcoin-dollar relationship is like a complicated dance that keeps changing its moves.
But since it can get quite volatile in terms of price, when folks feel pretty good about the dollar, they might ditch some of their Bitcoin for less volatile stuff. That can make the price of Bitcoin take a dip. The Bitcoin-dollar relationship is like a complicated dance that keeps changing its moves.
August 15, 2023, 01:39:33 AM
My question is this, why does the value of BTC decrease when the value of the dollar rises?
They are indirectly proportional. But do not let it deceives you, when you see the price of bitcoin falling, people are selling bitcoin is what that is happening. If you see bitcoin rising, people are buying bitcoin.
Although after some long period, dollar devaluation will become noticable but people do not see it as it is kind of hidden unless you are expert enough to calculate it.
August 15, 2023, 01:26:53 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.
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.
August 15, 2023, 01:19:14 AM
They are not 1 - to - 1 correlated.
Nobody really pays attention when the dollar goes down during inflation, because everything is denominated in dollars. Therefore, when you see BTC price go up, that can mean either two things - the market demand of Bitcoin is increasing, or the US dollar is losing value because of inflation while Bitcoin stays at the same demand.
Same is true in reverse - when BTC value goes down, it doesn't necessarily mean that dollar is also going up, perhaps the dollar is remaining at the same value while BTC's own demand diminishes.
Nobody really pays attention when the dollar goes down during inflation, because everything is denominated in dollars. Therefore, when you see BTC price go up, that can mean either two things - the market demand of Bitcoin is increasing, or the US dollar is losing value because of inflation while Bitcoin stays at the same demand.
Same is true in reverse - when BTC value goes down, it doesn't necessarily mean that dollar is also going up, perhaps the dollar is remaining at the same value while BTC's own demand diminishes.
August 14, 2023, 09:49:08 PM
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. My question is this, why does the value of BTC decrease when the value of the dollar rises?
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