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Topic: Is the US Dollar Too Volatile? - page 7. (Read 1339 times)

full member
Activity: 868
Merit: 116
April 25, 2018, 05:48:12 AM
#39
Honestly, there is always a volatility in value of all currencies (Crypto and FIAT). As well, It is true that the era of Bitcoin or digital currencies in general have changed all financial transactions to the best and because of their advantages, there has been a significant evolution in the number of their users over time, but it is not the main reason for US dollar decline. 

As a matter of fact, there is always a stability in the price of US dollars and most FIAT, contrary to what happens in Cryptocurrencies. For me, I think if the governments cannot destroy Bitcoin, then it sure that there will be a global reorganization of him, and may it will be the single currency, when this is achieved, I am pretty sure that FIat (Dollars, Euro) will disappear.
legendary
Activity: 3542
Merit: 1965
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April 25, 2018, 04:21:26 AM
#38
The US Dollar by definition is not volatile, but rather dying a slow death. Volatility is the liability to change rapidly and unpredictably, especially for the worse. So, to come back to the US Dollar, that are the exact opposite to definition of volatility. There is no rapid decline in the value and the decline is predictable. We know it is losing buying power at a constant rate of approximately 10% a year. Inflation will even grab some of your Bitcoin's value over time, if the price remain at it's current value.  Roll Eyes

Bitcoin has shown last year that it is a Inflation Buster! <700% increase in the value, in one year>  Grin
sr. member
Activity: 1344
Merit: 253
April 25, 2018, 04:09:48 AM
#37
Dollar purchasing power always lower year by year because after bretton woods agreement, central bank or the fed print money not back up by gold anymore. Central bank always create inflation year by year and their reason is boosting economic growth.
Volatility on dollars is too bad compare with bitcoin volatile because bitcoin volatile always rising the price, and not with dollar
but fluctuations in dollar decline i think gradually, unlike bitcoins that can dump at any time and can growth any time too. this may also be due to government policies that are less supportive for the economic sector, thus lowering dollar price
sr. member
Activity: 1498
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April 25, 2018, 03:50:40 AM
#36
Dollar purchasing power always lower year by year because after bretton woods agreement, central bank or the fed print money not back up by gold anymore. Central bank always create inflation year by year and their reason is boosting economic growth.
Volatility on dollars is too bad compare with bitcoin volatile because bitcoin volatile always rising the price, and not with dollar
This may be the problem of USA in the next consecutive years. Dollar rate weakens every year, as we can see above the chart. I don't know why it happens with America but I think their debt in China really affects the downturn of their economy. Afterwards, as the dollar slowly moves down, there is a tendency that inflation occurs in whole America.
The bad thing in volatility of US dollar is that, it did not return back to its price rather, it will floorish time by time. If the US dollar devaluates, it will affect not just in USA but in the whole world since there are some countries that backed up by dollar.
member
Activity: 700
Merit: 10
April 25, 2018, 02:10:24 AM
#35
Dollar purchasing power always lower year by year because after bretton woods agreement, central bank or the fed print money not back up by gold anymore. Central bank always create inflation year by year and their reason is boosting economic growth.
Volatility on dollars is too bad compare with bitcoin volatile because bitcoin volatile always rising the price, and not with dollar

Indeed, if us dollar not use in many world for transaction, I am believe america already bankrupt because US Federal Reserve print money without proper audit and thats why we always have crisis situation.
sr. member
Activity: 448
Merit: 250
April 24, 2018, 11:18:07 PM
#34
The value of the dollar is likely to continue to decline in the future. I understand that, as the government needs more dollars to buy more goods, so it must increase the supply of the dollar. In fact, every year the United States is selling American bonds to several other economic powers, and the value of these bonds, along with the decline of the dollar also falls. It's low.
sr. member
Activity: 1428
Merit: 251
April 23, 2018, 08:46:51 PM
#33
Dollar purchasing power always lower year by year because after bretton woods agreement, central bank or the fed print money not back up by gold anymore. Central bank always create inflation year by year and their reason is boosting economic growth.
Volatility on dollars is too bad compare with bitcoin volatile because bitcoin volatile always rising the price, and not with dollar
jr. member
Activity: 84
Merit: 8
April 23, 2018, 08:30:16 PM
#32
Today, it seems everywhere you look there are negative things being said about bitcoin volatility.

To break up the monotony of borish media sources endlessly discussing btc volatility as if they have nothing better to do than beat dead horses 24/7/365, let's change the subject to a more neglected topic, that of: fiat volatility.  Smiley

Behold exhibit A.



Image link: https://i.imgur.com/km3TFeR.jpg

This chart would appear to contradict what many say about the US dollar representing a stable value. The buying power of the US dollar appears to be declining significantly over time.

Example of the purchasing power of the US dollar declining: a 2 liter bottle of soda used to cost $1.00 in the united states, not long ago. Today it costs $2.00. If the paradigm shift from $1 to $2 occurs over a 10 year period, we might say that inflation is occurring @ a rate of 10% per year or the dollar is losing 10% of its value per year in contrast to purchasing food items like 2 liter bottles of soda. This precedent of diminishing fiat buying power could apply over our global economy.

So it is possible the purchasing power of the US dollar and other fiat currencies are diminishing significantly over time.

What are everyones thoughts on this?   Huh

This question deserves a detailed explanation so stay with me. The canadian dollar and the US Dollar are both affected by oil prices but DIFFERENTLY!

Oil Prices and Oil Exchange

In 2014 when OPEC (Organization of Petrol Exporters) decided that they would maintain the supply of oil despite it’s plummeting prices this had detrimental impact on the Canadian economy, because Canada is one of the largest exporters of oil to the US this meant that it became more difficult for their oil prices to remain competitive. It became more difficult for Canada to sell oil at profitable prices, this sent the Canadian economy down the drain. However the US Economy flourished because of how easy it was and still is to get oil.
newbie
Activity: 182
Merit: 0
April 23, 2018, 08:22:58 PM
#31
I expect dollar to actually be volatile because it is the most active  fiat, recognized and used for trade internationally. It dominates the exchanges just as bitcoin do. This is one reason. Dominating the market means multiple activities and maybe manipulation around the currency.
I am not an economist but i think your idea is true. Once a currency is famous meaning used by many then its value can be volatile. Just like bitcoin. Bitcoin is used mostly by everybody so it is the most volatile crypto currency.

legendary
Activity: 2562
Merit: 1441
April 19, 2018, 06:03:09 PM
#30
If you take the official statistics on inflation in the US, it is no more than 5 percent per year, already for 30 years.

US inflation statistics are similar to unemployment statistics. The "official" number cited by politicians and the media do not reflect real unemployment / inflation. Real inflation is closer to 10%, it well exceeds 10% in many instances. One of the first topics "financial freedom" gurus might address is how to best beat inflation to retain or enhance the value of wealth, being how significant an obstacle to overcome inflation is.

An example of real inflation are 2 liter bottles. Less than 10 years ago, they were $0.99. Today they're $2.00. That's more than 100% price inflation in less than 10 years which amounts to more than 10% per year. Water shortages in some areas and drought related to climate change do factor into that price inflation, but still real inflation is generally agreed to be much nearer to 10% year than it is 3% annually.
member
Activity: 135
Merit: 10
April 19, 2018, 11:35:38 AM
#29
US dollar weakness in combination with the tax reform, and fiscal growth stimuli remains highly supportive. Bonds and the rand are likely to be much more volatile.
newbie
Activity: 256
Merit: 0
April 02, 2018, 11:03:29 PM
#28
If you take the official statistics on inflation in the US, it is no more than 5 percent per year, already for 30 years. Inflation of the dollar directly depends on the amount of money printed by the US Federal Reserve System. Recently, the Fed continues to pump up the economy of the money supply. The more US banknotes are printed, the lower their value becomes. The growing US debt is a very unpleasant trend that devalues ​​the currencies and reserves of other countries, forcing them to support the deficit of the US state budget. The US gold reserves are already less than 2% of its continuously growing public debt.
legendary
Activity: 2044
Merit: 1115
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April 02, 2018, 10:06:14 AM
#27
Dollars in not too volatile not like bitcoin, there's fluctuations but not that large like bitcoin. USD has a time to be stable at her price and other day there's a time that it changed a little.


Dollars as is being regulated by the government it cannot be too much volatile. It would mostly be a range bound. But it is not the case with btc as it is not being controlled and government it can freely rise or fall to any extent creating a highly volatile crypto currency.

First, the dollar isn't exactly regulated by the government. The Fed, which controls the money supply, is a semi-autonomous non-governmental institution, although the lines are sometimes blurred. At least it is supposed to be independent from the government and therefore politics. Second, the government cannot control what everyone's opinion of what the dollar is worth. It's not a government dictate that determines the value of the dollar, but everyone's collective confidence in the dollar that keeps the value stable. This is why hyperinflation is so difficult to control, because once people lose confidence in the value of a currency, the government is powerless to stop the value from falling. It is only by pegging a hyperinflating currency to a stable one (and of course stop printing them) or doing away with it entirely and instituting a new one that hyperinflation can be stopped.
hero member
Activity: 1218
Merit: 557
April 01, 2018, 12:58:46 AM
#26
Dollars in not too volatile not like bitcoin, there's fluctuations but not that large like bitcoin. USD has a time to be stable at her price and other day there's a time that it changed a little.


Dollars as is being regulated by the government it cannot be too much volatile. It would mostly be a range bound. But it is not the case with btc as it is not being controlled and government it can freely rise or fall to any extent creating a highly volatile crypto currency.
member
Activity: 162
Merit: 10
April 01, 2018, 12:46:16 AM
#25
Dollars in not too volatile not like bitcoin, there's fluctuations but not that large like bitcoin. USD has a time to be stable at her price and other day there's a time that it changed a little.
member
Activity: 770
Merit: 12
Trphy.io
April 01, 2018, 12:24:57 AM
#24
i think dollar index is fluctuative too. but volatile usd is not as large as bitcoin, so usd tend to be stable. i think if btc can be controlled by government then it will be more stable  like usd
jr. member
Activity: 168
Merit: 5
Now You Can Be The Bookmaker!
March 30, 2018, 03:46:54 AM
#23
Anything like that can be seen also in some currencies. But to make a clear comparison against bitcoin I think we should look at the graph's bottom. The purchasing power of dollar is set in the graph as a year. Maybe it would be clearer if you are putting daily, weekly or monthly graphs to see how volatile dollar is. As to the way I saw it does not show that much. It is stable.
newbie
Activity: 204
Merit: 0
March 30, 2018, 03:13:49 AM
#22
Not really, it is quite stable compared to bitcoin and other cryptocurrencies. It does not fluctuate in value as often as bitcoin does and you are always sure of your currency.
full member
Activity: 659
Merit: 101
March 30, 2018, 02:04:13 AM
#21
All market prices will continue to fluctuate but with far-reaching differences between cryptocurrency and fiat markets. Therefore I am very fond of the rapidly moving movement of the cryptocurrency market, with it we can take advantage of the quick moments for trading and making a profit.
It all depends on the currency with which we are making a comparison. If you are comparing the volatility of the dollar with that of the crypto currencies, then there is no such thing which can make us believe that dollar has more volatile nature. On the other hand, if you talk about making a comparison in between the volatility of dollar with respect to other regular currencies, then we can say that it has little more volatile nature.
sr. member
Activity: 476
Merit: 259
March 26, 2018, 12:48:30 PM
#20
I expect dollar to actually be volatile because it is the most active  fiat, recognized and used for trade internationally. It dominates the exchanges just as bitcoin do. This is one reason. Dominating the market means multiple activities and maybe manipulation around the currency.
Dollar won't be so volatile because it's being controlled by the USA.
It's a centralized currency and if the currency drops, usa can just increase the interest rate, or if the currency goes higher, US can just print more cash or decrease the interest rate.
They can control the currency and they prevent it from being to volatility so the economy will stay stable.
Volatility currency isn't good for the economy in the long term.
 
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