Whatever happens to the US Dollar will have an effect on all markets in the world, including Bitcoin will be affected. Because the US Dollar is
the global currency used for international transactions, many currencies are based on the US Dollar price. So I really believe the US Dollar will
not be worthless, if the US Dollar value falls, it will definitely rise soon, otherwise there would be chaos in the world economy. Because I believe
that the US Dollar has a very big influence on the world economy.
Topic: btc value and currency inflations - page 2. (Read 973 times)
If currencies (especially the US dollar) are highly devalued, it wouldn't have anything to do with Bitcoin and that means Bitcoin will be worth more in dollars, and those who bought at the early stage before that happens will benefit more from it.
Well, I don't really think so because the fall of USD would mean the fall of the whole share market and there will be chaos in the market which might actually affect the price of bitcoin negatively as we had seen during the initial stages of corona virus as the market dropped down even the BTC price was down even around $5k at time if I am not wrong.I don't think there is any reason or news to back such claims but an interesting question and a good debate although I feel that there is no way that the bitcoins won't be moved by the drop in USD because all these markets are connected to each other and if USD drops to 50% value suddenly then BTC won't double it's value in USD suddenly either.
Even though bitcoin is based on the decentralization, it still connects to the world economy. Why? Because bitcoin users are us who definitely bound to our daily life and our economy. Thats what make the price of bitcoin affected if one day usd dollar drops. But no matter how madness our world could be, there will be no chance for USD to decrease to 0. Many countries rely on this currency and the USA understand their responsibilities of maintaining their Dollar and the global financial system
And you are completely right on your observations, a currency that can be inflated at will is something that benefits governments because they can tax you without having to pass any laws and what is even worse is that this is a tax against your wealth and not your income, which in my opinion makes it the worst tax governments can levy against their citizens, the rich benefit from this as well as most of their wealth is not on fiat money but on the form of properties and stocks which go in value with inflation, bankers benefit as well because people have to live on credit just to get by, but you know who does not benefit from this?
Well, some clarifications seem invited
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
This is really about financial literacy something that most of the people truly don't have.
If currencies (especially the US dollar) are highly devalued, it wouldn't have anything to do with Bitcoin and that means Bitcoin will be worth more in dollars, and those who bought at the early stage before that happens will benefit more from it.
Well, I don't really think so because the fall of USD would mean the fall of the whole share market and there will be chaos in the market which might actually affect the price of bitcoin negatively as we had seen during the initial stages of corona virus as the market dropped down even the BTC price was down even around $5k at time if I am not wrong.I don't think there is any reason or news to back such claims but an interesting question and a good debate although I feel that there is no way that the bitcoins won't be moved by the drop in USD because all these markets are connected to each other and if USD drops to 50% value suddenly then BTC won't double it's value in USD suddenly either.
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.
It is usually beneficial during the time if volatility that will drop the coin. So stocking your coin in conversion to such stable coin will help in retaining its value. UST is playing big and important function for hodlers. I think it is one of the big utility coin so far to hodlers. But sometimes people feel bad when they miss the move up because of UST.
And you are completely right on your observations, a currency that can be inflated at will is something that benefits governments because they can tax you without having to pass any laws and what is even worse is that this is a tax against your wealth and not your income, which in my opinion makes it the worst tax governments can levy against their citizens, the rich benefit from this as well as most of their wealth is not on fiat money but on the form of properties and stocks which go in value with inflation, bankers benefit as well because people have to live on credit just to get by, but you know who does not benefit from this?
Well, some clarifications seem invited
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
Inflation and deflation is what can happen to any currency in the world. During the pandemic many currencies lose value which most of the currency are just gaining their value back base what covid-19 has caused in the world economy. Many government printed more money to restore back their economy to normal so that citizens can return back to to their normal business.
Even though US dollar turn to worthless which it can never happen to US currency because they value their currency than any other business. Bitcoin is different from US dollar which it can't cause bitcoin to devalue . Bitcoin is decentralized currency which it show example of decentralized currency during pandemic.
Even though US dollar turn to worthless which it can never happen to US currency because they value their currency than any other business. Bitcoin is different from US dollar which it can't cause bitcoin to devalue . Bitcoin is decentralized currency which it show example of decentralized currency during pandemic.
Please note how much the important things outside the inflation measuring basket (I guess CPI) have risen compared to the things that are inside the basket. Inflation in education expenses are quite spectacular here, but also healthcare, not included, are on the rise.
Of course those are engineered to keep the inflation number low, so that CB's can inject more money into the system and distort it even more.
I am more and more convinced that the inflation death spiral was a truly engineered plan to avoid people to reach some basic financial independence. Given the rising cost of goods and stagnant incomes, let alone massive unemployment people need always more debt to finance their living. And what about those who can’t even access some debt money? This is bad man.Of course those are engineered to keep the inflation number low, so that CB's can inject more money into the system and distort it even more.
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.
I do agree with you USD is not going to disappear anytime soon.
Actually for a currency to disappear the government must default, and this is not going to happen by design in the US, where the FED can actually print as many dollar are needed for the government to repay the debt (in Europe we have a different system).
What it can happen instead is the constant bleeding of value due to inflation, even if it is not going to tear the currency trough painful events. This is actually beneficial to the highly indebted government, not to suffocate under his own debt.
So this IS going to happen.
USDT is little relevant, being pegged to the USD, it ill lose his value too.
Bitcoin fixes that.
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.
USD will never be worthless. It may devalue well, it is obvious about inflation but I don't think it would just fall under something that we could describe or call it worthless. Just imagine bitcoin having a great value beacuse of that but we can't actually use bitcoin in our daily basis since we will still be converting or selling that into fiat.
USD will never become worthless as long as there are still people who want to live in the US and I tell you, there are plenty.
At least not the physical USD notes. I am not sure about the banks though.
USDT is a lot
BTC's value is whatever you believe it is.
story...
At least not the physical USD notes. I am not sure about the banks though.
USDT is a lot
BTC's value is whatever you believe it is.
story...
Really know that from my views that you USD can't be worthless but certain measures have to be provide in order to convinced readers categorically or stanza by stanza, the only thing I noticed is that can make USD to be worthless is economy of their country, provided that the currency is in existence and coupled with economy, nothing can devalues USD.
See, it's obvious that Bitcoin the values is Paramount, shall from other views everyone can Concord or directly believe in bitcoin via it's regulations of market, because i think the values of btc correlated with cryptocurrency values especially bitcoin.
If USD goes worthless then USDT also will be worthless at the same time because the value of USDT is pegged to USD dollars but in my opinion, USDT will go worthless due to hyperinflation caused by excessive printing before the USD reaches such a position.
USDT as a project generally encroaches on the sacred cow of cryptocurrencies, which consists in the lack of security and the absence of any guarantees. It is this opportunity that allows us to hope for a multiple subsequent growth and contributes to this to some extent. This leads to a multiple fall at times, it's true. But still there is a future in any case. And USDT is just a business venture that can go broke.
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.
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?
This is far from reality and there's no such dump over night, I don't read it on the price history of the whole market. There are times that we are suffering from the big inflation and as far as I remember, bitcoin created right after the financial crisis in 2018, and its purpose is to become the best option if crisis happen again. Now, most of the country enters into a recession yet bitcoin is still not that high, so the value really depends on the demand in the market and the value of bitcoin is unpredictable.most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
Well, US Dollar has been constantly losing value since his creation. US Dollar actually designed to yearly lose 2% of it's value, and now FED is struggling because they have been failing at this during the last years.
So don't look for overnight dump (yet) but the continuous bleeding in your purchasing power.
Also, it might be a typo, but Bitcoin was created after 2008 financial crisis, of course.
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 goes worthless then USDT also will be worthless at the same time because the value of USDT is pegged to USD dollars but in my opinion, USDT will go worthless due to hyperinflation caused by excessive printing before the USD reaches such a position. most traders use USDT so if something happens with usa dollar is my USDT Will be worthless over night?
USDT is occasionally used to covert our asset to protect it from volatility and I have not come across any individual till date who have invested in USDT like we do with other crypto. I would request you to avoid taking unnecessary panics.
usdt is verry useful but why say that no one invested on it ? you already explain the purpose of usdt . Please know the difference between USD and USDT,
he explain his words properly and he knew that usd and usdt are not the same . they look simillar because of the name but the 'T' at the end of the usd't is too big to not to be noticed .its possible for local currencies to be devalued but they are strong enought to hold thier value and not drop to zero . we can still measure btc but it would be complicated for us if local currencies value turned to zero .
If currencies (especially the US dollar) are highly devalued, it wouldn't have anything to do with Bitcoin and that means Bitcoin will be worth more in dollars, and those who bought at the early stage before that happens will benefit more from it
In fact, that remains to be seen
If the dollar depreciates and Bitcoin appreciates proportionately, there will be no real gain. Yes, Bitcoin will be worth more in dollars, but will it be worth more in real terms? To actually benefit from holding your funds in Bitcoin, it should rise faster than the rate at which the dollar loses value. Only in that case you can say that it is worth the effort compared to other investment assets which are going to outperform inflation (stocks, whatever)
Bitcoin is a decentralized currency is not control by any country or government. US dollar is a centralized currency which government are the one in charge of the currency in the country. They will never allow their currency to devalue because they know it very well that if USD devalue many countries economy will be at risk. But bitcoin can never devalue if USD choose to devalue which the government will not allow it to happen in this season will are which the US election is just few weeks from now. I think USD will never devalue because of what the government stand for to make sure the currency Maintain value on the time.
That's the difference you mention between bitcoin and Us currency. Us currency can never be devalued or become worthless it is used through these years globally. We already observed bitcoin and it's growth is increasing. Bitcoin and us currency has different use and function which is very important to the users, and us currency will not be worthless overnight. People should avoid this mindset of panic that us currency will be devalued as long people use this it will not happen. We literally have a virus that could kill us all in the end if we are not careful, the humanity is locked down or at least should be locked down, even talking to each other face to face could lead to death, if that doesn't sound like something extreme I don't know what could be, when we live in a world where talking could lead to death, I am sure US dollar could worth nothing as well in a different scenario this extreme. However it wouldn't be easy, they are way too powerful to let it be done that quickly, they will fight hard tooth and nail on world stage to stop that from happening if anything extreme happens.
The problem with the inflation right now for higher level stuff is the biggest problem, college, house, car these are the big name things that people can't earn anymore with small amount of money, you would have to be really well off to do this or you should be in debt for a decade at least to be able to buy a house, that is not how the world supposed to be.
First of all in USA there is tons of land and that means people should be able to buy houses very cheaply, but even lands are a lot of money now, secondly just because eggs and coffee looks not that bad doesn't mean that kids are spending 2-3 decades of their lives only paying their college education which doesn't even bring as much wealth to you as uneducated milkman made 50 years ago, that is the real problem.
First of all in USA there is tons of land and that means people should be able to buy houses very cheaply, but even lands are a lot of money now, secondly just because eggs and coffee looks not that bad doesn't mean that kids are spending 2-3 decades of their lives only paying their college education which doesn't even bring as much wealth to you as uneducated milkman made 50 years ago, that is the real problem.
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