Topic: US Dollar Efect on the world and Crypto - page 2. (Read 447 times)
if the US dollar rises inevitably greatly influences the digital currency, for example, what is happening now with the dollar rising in crypto prices is immediately down, this certainly has a link between the dollar and crypto.
yes of course, the increase in the dollar price has an effect on the crypto currency, and also on other countries, so if the prediction of the dollar price will continue to increase until the end of the year, if the dollar price increase is insignificant it might not matter, but if the dollar price continues to increase significantly it might be dangerous for developing countries I think inflation will happen again ... oh I'm afraid to hear this news
In this regard, it would be interesting to understand how other stable Coyns (TrueUSD and DAI) use the emission algorithm.
Here in normal cryptocurrencies is usually understandable. PoW-coins are strictly limited by the increasing complexity of mining, and some, like the cue-ball, are also limited by the maximum emission.
For many PoS-coins, the quantity is initially spelled out in the blockchain, they are released to the market immediately and additional “printing” is not possible.
Some PoS coins even have a gradual “burning” algorithm.
And in my opinion Tether is released in such quantity in what its founders and their friends from Bitfinex wanted. What opens the scope for market manipulation in a wide range.
How is it with other stable coyins? Is their emission scheme more transparent?
Here in normal cryptocurrencies is usually understandable. PoW-coins are strictly limited by the increasing complexity of mining, and some, like the cue-ball, are also limited by the maximum emission.
For many PoS-coins, the quantity is initially spelled out in the blockchain, they are released to the market immediately and additional “printing” is not possible.
Some PoS coins even have a gradual “burning” algorithm.
And in my opinion Tether is released in such quantity in what its founders and their friends from Bitfinex wanted. What opens the scope for market manipulation in a wide range.
How is it with other stable coyins? Is their emission scheme more transparent?
I am in line with your opinion, and I think that as has happened before the rise in dollar prices has affected the crypto market. and of course this phase has an impact on developing countries, it will be difficult to accept the existence of crypro in their country, such as developing countries in Southeast Asia.
The value of crypto is more than US dollar and it is seen that when you have an International currency that affects many other currencies and Us dollar is more powerful so that's why it affects many other currencies and it affect the whole world because the world trade and payment are in dollar so it influence things and crypto is also good we use it for payment in these days.
It depends on the usage of it as well. If dollar gets stronger and at the same time invested on third world countries it would improve those countries much better. If you don't use it smartly than it would only make your inevitable economic crisis postpone for couple years.
Dollar create a big impact for the world economic and it hit hard several countries when the dollar got big movement, but it wont do any direct damage to the crypto, because crypto and fiat market are different, but it will impact on the ability of people to buy and sell crypto, as far as I know the movement of dollar either is big or small not yet got big impact for crypto
US Dollar is the most dominant currency of the world. Its strengthening will obviously have an impact on both fiat and crypto currency. Not sure to what extent it can influence the crypto currency though.
Us dollar has made a position in the world that is a dominant one. A lot of country keep their reserve in USD. Besides, the withdrawal of cryptocurrency can only be done in USD. So,considering the fact that the fall of USD's price will also affect the Crypto, it can be said that the USD has a huge influence in the real world and on crypto currency.
The US Dollar is more a common denominator for most currencies. A lot of countries of the world have their reserves in USD, so a USD that is healthy which see the reserves of these equally surging and vice versa. It's effect on crypto is also considerable as withdrawals into fiats are usually in USD and a depreciating dollar will reduce the value of the crypto exchanged.
right, but between economics and crypto i don't think it has a significant effect. we know bitcoiner in the world is still minimal, so it is still difficult to influence the global economy
Both crypto and US dollar had their own economy, although there's a fluctuations happening with bitcoin nowadays we only see what's tye final amount of fiat equivalent from btc to dollar rate. If you sold your btc to fiat currency exchange, then the final value relies with fiat economy now. Eventhough you have sold hundreds of btc, the whole thing there was based on current US dollar rate and when the dollar fluctuates it's price it would really affects the total amount sold.
It can't be said for sure cause crypto is a decentralised coin. But the US Dollar is a global currency, so the whole market price might affect on crypto too. The downward price might reduce the value of crypto, or it has the possibility to go totally reverse. So if might affect the crypto, but not sure which way.
The US Dollar is more a common denominator for most currencies. A lot of countries of the world have their reserves in USD, so a USD that is healthy which see the reserves of these equally surging and vice versa. It's effect on crypto is also considerable as withdrawals into fiats are usually in USD and a depreciating dollar will reduce the value of the crypto exchanged.
Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.
The US dollar is the base currency of the world just like how Bitcoin is the base currency of the crypto world. In times of uncertainties capital gets parked in that what is globally accepted to be a safe haven, which in the legacy world is either the US dollar or Gold. It makes sense as well, especially with how most of the money in the world isn't being used as money, but as speculative vehicle.
I'm not sure to what degree it is influencing crypto currencies, but it might play a role of importance with how we have more institutional presence than ever before. On the other hand, people need to understand how the crypto market cycles through various phases, and as what happened multiple times already, a bear market like we experience right now is pretty common and organically results in long periods of stability and stagnation.
One spark is enough to get this market up and running again. Right when people tend to get too comfortable with the market, it pulls off something that brings back fear/greed/uncertainties, etc.
It depends on the usage of it as well. If dollar gets stronger and at the same time invested on third world countries it wold improve those countries much better whereas when it is losing value and getting withdrawn from those countries it kills the economy like it did in Turkey.
If they are smart they could potentially invest it into something that would yield profit even after the dollar is withdrawn but if not than they would have to face the consequences like they are right now. All in all the power of dollar depends on how you use it, if you use it wisely than it can really build a whole country with enough amount of investment and make it go from third world country to second world country quickly in 4-5 years.
Nevertheless, if you do not use it smartly than it would only make your inevitable economic crisis postpone for couple years until its withdrawn and than you will have a huge sudden fall just like Turkey is having right now.
If they are smart they could potentially invest it into something that would yield profit even after the dollar is withdrawn but if not than they would have to face the consequences like they are right now. All in all the power of dollar depends on how you use it, if you use it wisely than it can really build a whole country with enough amount of investment and make it go from third world country to second world country quickly in 4-5 years.
Nevertheless, if you do not use it smartly than it would only make your inevitable economic crisis postpone for couple years until its withdrawn and than you will have a huge sudden fall just like Turkey is having right now.
Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.
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