Question?
After research upon research, article after article about the great gift known as crypto currency something is missing. Then it hit me "damn", it might just be too good too be true. Now I know some of you are thinking what could possibly go wrong with crypto currency "Gosh, you sound like my parents right now". Most of us know how the dollar moves it fluctuates similarly to how stocks in the stock market move. If The dollar were to drop what would happen the values of the crypto-currencies? Are we wasting thousands of dollars investing? Or is there something I'm missing? Let me know what you think in the comments.
Resteem
Up vote
Cool Beans
You pose a good question. One thing to take note of is that many powerful countries across the globe have prepared themselves for the fall of the US dollar. If that does happen China and Russia are waiting to take advantage so it wouldn't crush the market on a global scale. Over the past few years they have been dumping US debt and buying gold so they're ready. Unfortunately for us in the states that would mean the price would get extremely high on our end 😒
Yea your totally right I didn't know all of that. Thanks for the infor we're venturing into scary territory 😨😨😨
Good question
Wouldn't cryptos, in essence, rise in value as other fiat currencies decrease in value? Say the US Dollar appreciates in value for any given reason (e.g., changes in monetary policy, wages, etc.), other fiat currencies become less valuable relative to the USD. In the case you've presented, I believe the same cause and effect relationship would apply. If, for example, the US were about to default then you'd probably see money flow into other countries or cryptos, making them more valuable relative to the USD. Some of the craziness and uncertainty going on in the world right now as of late may be driving more interest into alternative investment platforms. Just my opinion.
Sure but what is the currency backed by? Isn't the dollar backed by actual product? So in essence wouldn't the bitcoin and dollar just trade places? Because the crypto currency would be backed by the same product the dollar was?
Bitcoin is rising because dollar is reducing in value against BTC.