Sounds funny but reasonable, I have almost assumed such before, I felt, since Bitcoin will always be measured in us dollar how about when the dollar value depreciates I'm my country, doesn't it automatically mean the value of bitcoin has dropped too. I don't want to accept with those who says the value of US dollars cannot drop. It definitely can. Because it's value is determined by your country's currency rate to it.
This is a big dilemma by many nowadays, especially now that USD is beginning to show signs of decline. I'm thinking bitcoin will still retain its value even if the fiat it is connected to depreciates in value. If anything it will make bitcoin have a bigger impact. Think of it as the Venezuelan bolivar. It became so inflated that the people out there started using USD instead because you'd need a sack full of bolivars just to buy a hotdog. This could induce a force adoption of bitcoin which is good 
Topic: btc value and currency inflations (Read 928 times)
Sounds funny but reasonable, I have almost assumed such before, I felt, since Bitcoin will always be measured in us dollar how about when the dollar value depreciates I'm my country, doesn't it automatically mean the value of bitcoin has dropped too. I don't want to accept with those who says the value of US dollars cannot drop. It definitely can. Because it's value is determined by your country's currency rate to it.
It should be stable with respect to its underlying asset, that is to say, the American dollar. It is a stablecoin whose value is pegged to the dollar, and as long as this peg is maintained, it is rightfully considered stable regardless of how much the dollar itself depreciates. Therefore, you can't say that USDT will be losing "value" along with the dollar. Fundamentally, you are implicitly trying to redefine the idea of a stablecoin but that only destroys it
That is what I am talking about. It s definitely a stable coin in the sense that unless tether as a company bankrupts or runs away with our money (which is a possibility that very few people considered unfortunately) 1 usdt will always worth 1 usd and that is the stable part people talk about.However I do not like the word stable in this sense since it makes people think that the more usdt you have the richer you will get and that is not the word for rich neither, if you are not beating inflation even if you have more dollars that means you didn't get richer. If I buy a house worth 100k dollars today and in 5 years that house worths 150k while some other guy kept his usdt and his 100k became 120k, he "lost" money while he was still stable and that is what I am talking about
You are only further confusing matters
Stable in stablecoin has a very specific and established meaning. It means a peg and being stable means being able to keep or maintain this peg. You, on the other hand, are at first implicitly and then openly attributing a totally different meaning like being able to beat, or stay on par with, inflation. For this, there already exists a term which pretty much speaks for itself and which is inflation-protected, say, inflation-protected bonds and, hypothetically, inflation-protected coins
USDT is not actually "stable" in the sense that you could have 100 usdt that will always worth 100 dollars but that same 100 dollars will not be able to buy the same things it can buy today that it could have bought 5 years ago, there is inflation and that means your 100 usdt loses its "value" even if it doesn't drop in price
Well, that's not how "stableness" of USDT is defined
It should be stable with respect to its underlying asset, that is to say, the American dollar. It is a stablecoin whose value is pegged to the dollar, and as long as this peg is maintained, it is rightfully considered stable regardless of how much the dollar itself depreciates. Therefore, you can't say that USDT will be losing "value" along with the dollar. Fundamentally, you are implicitly trying to redefine the idea of a stablecoin but that only destroys it
However I do not like the word stable in this sense since it makes people think that the more usdt you have the richer you will get and that is not the word for rich neither, if you are not beating inflation even if you have more dollars that means you didn't get richer. If I buy a house worth 100k dollars today and in 5 years that house worths 150k while some other guy kept his usdt and his 100k became 120k, he "lost" money while he was still stable and that is what I am talking about.
It is only natural that the value of Bitcoin is affected by USD performance, because most people who trade Bitcoin pairing with USDT
are backed by USD. So USD indirectly affects the price of Bitcoin, in fact all markets must be affected by the value of USD. But I don't
believe the USD will be worthless, because the American government will definitely take steps so that the USD will remain valuable.
Therefore, many countries use USD as a global currency, this proves that confidence in USD is so high.
Even after printing a shit ton of USD it still didn't fell down a lot, despite fact that only US citizens received stimulus check - that means all of the world got somewhat scammed because their USD holding were devalueted to some extentare backed by USD. So USD indirectly affects the price of Bitcoin, in fact all markets must be affected by the value of USD. But I don't
believe the USD will be worthless, because the American government will definitely take steps so that the USD will remain valuable.
Therefore, many countries use USD as a global currency, this proves that confidence in USD is so high.
Honestly, I don't see a lot of sense in this
Are you unhappy that only American citizens received stimulus checks while the rest of the world, that is the part of it that holds dollars, didn't receive anything? It seems to me that you are looking at it from the wrong angle. Americans received free money because they are Americans and not because they have dollars. But did you really expect that the Fed should have given a free premium on every dollar in existence? Anyway, no one has forced you to buy dollars in the first play. For fuck's sake, you could have bought the Venezuelan bolivar or Russian ruble instead!
It is only natural that the value of Bitcoin is affected by USD performance, because most people who trade Bitcoin pairing with USDT
are backed by USD. So USD indirectly affects the price of Bitcoin, in fact all markets must be affected by the value of USD. But I don't
believe the USD will be worthless, because the American government will definitely take steps so that the USD will remain valuable.
Therefore, many countries use USD as a global currency, this proves that confidence in USD is so high.
Even after printing a shit ton of USD it still didn't fell down a lot, despite fact that only US citizens received stimulus check - that means all of the world got somewhat scammed because their USD holding were devalueted to some extent.are backed by USD. So USD indirectly affects the price of Bitcoin, in fact all markets must be affected by the value of USD. But I don't
believe the USD will be worthless, because the American government will definitely take steps so that the USD will remain valuable.
Therefore, many countries use USD as a global currency, this proves that confidence in USD is so high.
BTC's value is whatever you believe it is.
Do you believe btc's value is $12k because some exchange tells you?
BTC's real value for you is the price that'd make you cash em all out.
Nothing else. From which price would you cash out? $100k? That means your price is $100k for a coin.
Thats a wise thought.Do you believe btc's value is $12k because some exchange tells you?
BTC's real value for you is the price that'd make you cash em all out.
Nothing else. From which price would you cash out? $100k? That means your price is $100k for a coin.
It also works with most of cryptocurrencies and stocks out there.
And for most of newbie investors its a big piece of knowledge to have - its always up to you when to sell.
USDT is not actually "stable" in the sense that you could have 100 usdt that will always worth 100 dollars but that same 100 dollars will not be able to buy the same things it can buy today that it could have bought 5 years ago, there is inflation and that means your 100 usdt loses its "value" even if it doesn't drop in price
Well, that's not how "stableness" of USDT is defined
It should be stable with respect to its underlying asset, that is to say, the American dollar. It is a stablecoin whose value is pegged to the dollar, and as long as this peg is maintained, it is rightfully considered stable regardless of how much the dollar itself depreciates. Therefore, you can't say that USDT will be losing "value" along with the dollar. Fundamentally, you are implicitly trying to redefine the idea of a stablecoin but that only destroys it
lets say usa dollar and all currencies will be highly devalued .....then how we know the btc value??
most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
If USD will lose value then all local currencies of different countries will lose value too, I don't think that will happen. Our world is dependent on fiat. Imagine if it has no value, how are you going to buy things? How can you say this is cheap or not. You can't just say something cost 1btc without depending on a fiat currency.
You are talking about a different matter (aka "non sequitur")
Whether it is the worst thing or otherwise, inflation may help debtors as it devalues money and debts denominated in that money. In a more general sense, we can turn inflation in our favor because sometimes two evils or two minuses (debt plus inflation, in this case) can produce a good or a plus. Though I agree that it is not like everyone and his grandma can ride inflation to their advantage, through debt or other means
Inflation is generally a useful thing within reasonable limits and stimulates the economy if the government makes inflation in a small amount. A spasmodic one-time inflation, on the one hand, helps debtors, but painfully hits the savings of citizens and undermines citizens' faith in the economic policy of the state. It also poses a problem with long-term investments. Large inflation is the most important indicator of the wrong economic policy of the state in the vast majority of cases and makes it possible to level the blunders of state policy at the expense of ordinary citizens. Whether it is the worst thing or otherwise, inflation may help debtors as it devalues money and debts denominated in that money. In a more general sense, we can turn inflation in our favor because sometimes two evils or two minuses (debt plus inflation, in this case) can produce a good or a plus. Though I agree that it is not like everyone and his grandma can ride inflation to their advantage, through debt or other means
It is only natural that the value of Bitcoin is affected by USD performance, because most people who trade Bitcoin pairing with USDT
are backed by USD. So USD indirectly affects the price of Bitcoin, in fact all markets must be affected by the value of USD. But I don't
believe the USD will be worthless, because the American government will definitely take steps so that the USD will remain valuable.
Therefore, many countries use USD as a global currency, this proves that confidence in USD is so high.
are backed by USD. So USD indirectly affects the price of Bitcoin, in fact all markets must be affected by the value of USD. But I don't
believe the USD will be worthless, because the American government will definitely take steps so that the USD will remain valuable.
Therefore, many countries use USD as a global currency, this proves that confidence in USD is so high.
USDT is not actually "stable" in the sense that you could have 100 usdt that will always worth 100 dollars but that same 100 dollars will not be able to buy the same things it can buy today that it could have bought 5 years ago, there is inflation and that means your 100 usdt loses its "value" even if it doesn't drop in price.
This is why btc value is very important to keep going up constantly, the aim of bitcoin should always be to beat the "felt" inflation, not the inflation given to you by economists who are trying to keep you at bay with good numbers and fake happiness but the amount of money you spend per year changes and bitcoin increase should be higher than that increase you have yearly. USDT can't give you that, USD can't give you that, but BTC could potentially help you with it.
This is why btc value is very important to keep going up constantly, the aim of bitcoin should always be to beat the "felt" inflation, not the inflation given to you by economists who are trying to keep you at bay with good numbers and fake happiness but the amount of money you spend per year changes and bitcoin increase should be higher than that increase you have yearly. USDT can't give you that, USD can't give you that, but BTC could potentially help you with it.
lets say usa dollar and all currencies will be highly devalued .....then how we know the btc value??
most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
If USD will be devalued then obviously the price of Bitcoin will rise but that price is pegged to USD.most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
The question is that, will all of the establishments accept it?? In order for you to buy things right now and you have Bitcoin, its either you will tell to them that you will buy Bitcoin or you will convert the BTC into USD and you will use it. It will still be the same since the price will go up at that time.
lets say usa dollar and all currencies will be highly devalued .....then how we know the btc value??
most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
If USD will be devalued then obviously the price of Bitcoin will rise but that price is pegged to USDmost traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
That's not set in stone at all
As there are lots of offsetting factors at play here. I guess we can safely assume that the dollar has been more or less on the decline all these years, I mean, during the era of cryptocurrencies, i.e. the last 10 years. And so what? Bitcoin rose to 20k, then collapsed to 3k, then collapsed again to 4k from 9k half a year ago. The obvious conclusion is that these other factors have much more influence on Bitcoin price that the dollar depreciation. It is also a factor indeed, but I wouldn't rely on it too much as it can be easily overridden and ultimately completely negated by more powerful factors
lets say usa dollar and all currencies will be highly devalued .....then how we know the btc value??
most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
If USD will be devalued then obviously the price of Bitcoin will rise but that price is pegged to USD.most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
The question is that, will all of the establishments accept it?? In order for you to buy things right now and you have Bitcoin, its either you will tell to them that you will buy Bitcoin or you will convert the BTC into USD and you will use it. It will still be the same since the price will go up at that time.
First of all, inflation is generally useful for people living on credit. I'm personally aware of a few cases when a sudden, unexpected surge in inflation rates helped people to pay back their debts with cheaper money. Indeed, it is not always the case, but in general inflation is good for borrowers and bad for lenders, especially the type which can't be easily envisaged in advance and still more so for long-term loans
Then, rich people profit from inflation not so much because their wealth is in solid, inflation-resistant assets (as this can be equally true for simple people too) but mostly because they are the first to receive the money before it starts to lose value. Simple people, on the other hand, are the last to get their hands on the newly printed shekels and thus unwillingly become the target of inflation and have to bear all the nasty consequences of it
Living on credit, unless you have a solid financial situation, is the worst thing one could do. If we don't have the means to live up to our expectations then we shouldn't. Easy access to credit gave the illusion that everyone could afford anything, being a smartphone, a car or a house or whatever you likeThen, rich people profit from inflation not so much because their wealth is in solid, inflation-resistant assets (as this can be equally true for simple people too) but mostly because they are the first to receive the money before it starts to lose value. Simple people, on the other hand, are the last to get their hands on the newly printed shekels and thus unwillingly become the target of inflation and have to bear all the nasty consequences of it
You are talking about a different matter (aka "non sequitur")
Whether it is the worst thing or otherwise, inflation may help debtors as it devalues money and debts nominated in that money. In a more general sense, we can turn inflation in our favor because sometimes two evils or two minuses (debt plus inflation, in this case) can produce a good or a plus. Though I agree that it is not like everyone and his grandma can ride inflation to their advantage, through debt or other means
It looks me they are important for you too.
lets say usa dollar and all currencies will be highly devalued .....then how we know the btc value??
most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
Yeah, pretty much. But I'd rather be scared of USDT going down than the USD itself.most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
I'm more interested in why btc is skyrocketing while all stocks, alts and etc are going down.
That is the question of value
Since USDT is stable, it does not have much effect on its quality inflation on the dollar has had no effect on Bitcoin. This database contains all transactions that take place on the Bitcoin network and can be consulted freely by anyone so that you can participate in the creation of digital currency without providing your personal information but all your activities are public and easily searchable. There will be no need for currency violations.
It is losing its value gradually. Unlike with bitcoin, the pric eis so volatile that even in a single day you will lose a lot. Usdt is good because it is stablecoins. When we talk about stable, it is less volatile compared with other assets. Therefore, even you left your money in exchanges more than a day or night, you my expect to remain its value or it just move in a slow motion.
Do you even understand what the OP was all about? It is not demanding a comparison between USD and BTC instead it was about whether a change in the USD value will impact the value of Bitcoins and if USD becomes a victim of let's say high inflation rate then how would it impact the prices of bitcoins.Why everyone is so confused by the difference between USD (United States Dollar, the US currency) and USDT (the digital artifact representing US dollars, printed by bitfinex)? If you are worried about USDT collapsing that's ok, that's reasonable. On the other hand, if you are worried about the disappearance of USD you will be disappointed as that is not going to happen soon.
Thank God someone also thinks like me and yes USDT market is controlled by a single firm but the USD is the regulated currency of US which means it cannot fall like digital crypto currency USDT.There are many confused between USD and USDT then there are some who don't even understand that USD cannot be related with inflation because it is still the standard currency for almost all online transactions and doesn't face inflation too much in it's value.
First of all, inflation is generally useful for people living on credit. I'm personally aware of a few cases when a sudden, unexpected surge in inflation rates helped people to pay back their debts with cheaper money. Indeed, it is not always the case, but in general inflation is good for borrowers and bad for lenders, especially the type which can't be easily envisaged in advance and still more so for long-term loans
Then, rich people profit from inflation not so much because their wealth is in solid, inflation-resistant assets (as this can be equally true for simple people too) but mostly because they are the first to receive the money before it starts to lose value. Simple people, on the other hand, are the last to get their hands on the newly printed shekels and thus unwillingly become the target of inflation and have to bear all the nasty consequences of it
Living on credit, unless you have a solid financial situation, is the worst thing one could do. If we don't have the means to live up to our expectations then we shouldn't. Easy access to credit gave the illusion that everyone could afford anything, being a smartphone, a car or a house or whatever you likeThen, rich people profit from inflation not so much because their wealth is in solid, inflation-resistant assets (as this can be equally true for simple people too) but mostly because they are the first to receive the money before it starts to lose value. Simple people, on the other hand, are the last to get their hands on the newly printed shekels and thus unwillingly become the target of inflation and have to bear all the nasty consequences of it
You are talking about a different matter (aka "non sequitur")
Whether it is the worst thing or otherwise, inflation may help debtors as it devalues money and debts denominated in that money. In a more general sense, we can turn inflation in our favor because sometimes two evils or two minuses (debt plus inflation, in this case) can produce a good or a plus. Though I agree that it is not like everyone and his grandma can ride inflation to their advantage, through debt or other means
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