Topic: How Would The ATH Affect Economic Conditions Globally (Read 87 times)

Thank for your insight,contribution and highlighting me more openly on marketing.

the only way I fit think of as to the global implications of Bitcoin continuous rising be say, as people de get profit from thier Bitcoin holding, e go help them become more financially bouyant which by implication fit affect the economy for the better. Logically, Bitcoin increase in price no go directly influence the value of the naira positively, because e go even de increase the demand for the dollar when you go wan use buy some coin when go also cause the scarcity of the dollar and that way the dollar go de appreciate while the naira go de depreciate.

One thing be say, even if Bitcoin experience an ATH of $500k, if you never been de buy Bitcoin as at when the price been de low, the effect of the rise in Bitcoin price won't affect you positively. The current bad economy de stop a lot of  us from buying Bitcoin and if you de earn from naira, e go de too deficult for you to even buy Bitcoin even when the market DIP. With 50 thousand naira, you can only buy a so small fraction of Bitcoin and that is an amount that's too high for the majority of people to fit use buy thier coin. The implication be say,  the current bad economy go make am deficult for us to fit benefit from global occurrence like Bitcoin getting bullish because we've already been placed at a disadvantage due to the bad exchange rate and the high inflation we're facing.

What affect the exchange rate of Naira/dollar is the demand of the currency so when more people are buying dollars, the price goes up but when more people are selling the price usually drops. It has nothing to do with the ATH or not because the rate can go high either in the bull market or bear market.

Also there are other factors that affect the trading rate of both currency so nothing much get to do with the ATH but I get your logic as during when people want to buy, dollar rate is likely going to increase and same when people are selling but just know say it doesn't necessary have to be the crypto market that contribute heavily to this happening.

Know say some people already invested in Bitcoin before now and it's altcoins that they're investing into when the bull market comes, they still buy dollars (USDT) for this but some just buy directly or buy other crypto with Naira.

Bitcoin is a decentralized digital currency, while naira, dollar and other currencies are fiat, they are centralized meaning that governments control them, so in this regard Bitcoin ATH doesn't have anything to do with fiat inflation or otherwise. Bitcoin can be used as an alternative to fiat for payments in places where it is accepted, on the other hand some people hodl it as an investment asset, and they get returns on investment during bull run. Another reason why ATH has no effect on fiat currencies like naira and dollar is that the adoption of Bitcoin has not reached a stage where almost everybody is holding it, meaning that the effect of bull run and bear run can only directly affect the people and institutions that holds it.

The advantage of Bitcoin as a hedge against inflation for a devaluing currency like naira is that instead of leaving the money that you don't want to spend on a short term in the bank, it is better to use it to buy Bitcoin and hodl. When Bitcoin reaches ATH in bull run, you will always get profits on your investment.

The effect will be felt in the wallet of those who have invested in bitcoin and have been Holding for a long period of time. Bitcoin is a private asset, you can only feel the impact of the ATH if you're a Holder, the average citizen that doesn't have Bitcoin doesn't really feel the impact, as a typical Nigerian is mostly affected by the rise of Dollar against the naira, and not the rise of Bitcoin. So Nigerians that would want to invest in cryptocurrency, will be doing that as their private investment with the hope of having interest over a period of time, which is far different from stabilising the Naira, as factors that will help stabilise the Naira are domestic based, such as production, importations of finished products and a whole lot more.

Una good day my good members of Naija.

 How Would The ATH Affect Economic Conditions Globally

I thought of this some days ago and I decided to bring this here and table it,my mind is at the effects of inflation of bitcoin on USD & NGN,if the Bitcoin hit ATH it can have various effects on Dollar and Nigeria Naira as well,the impact of it in Dollar can reduce a massive demand because as Bitcoin's price increases many investors may move their founds from USD to BTC and it will definitely leads to reducing of demand in Dollars,the same thing applicable to Niara definitely there will be demand reduction in NGN because as the price of bitcoin keep rising it may encourage more Nigerians to adopt cryptocurrency and it can also potentially stabilizing the Naira,so can you think out of box and look at it the other way round,what would be the impacts of it Globally in terms of Economic conditions?