Welcome to BeerMoneyForum.com - BIGGEST MAKE MONEY FORUM ONLINE

[AudraMiller]

There is of course a link between the fiat currency value and the price of various cryptocurrency coins as well, and there are many peopel that are trying to use cryptocurrency in order to try and overcome the effects of inflation that have become so prominent over the last couple of years. However in a recent article, it seems that the solution that America has to print more money may be good for the cryptocurrency world as well. According to the mayor of Tennessee, he believes that if the united states of america goes ahead with the printing of more us dollars, that it would result in a rise in bitcoin prices. In my opinion this could be possible as the rise in bitcoin price would be as a result of the devaluing of the dollar with its increased supply. What are your thoughts on this?

 

[AudraMiller]

Obviously the US dollar will I have its strength decreased globally because countries will now be dealing directly using cryptocurrencies in relations to their Fiat currencies.

There are many countries that are starting to develop their own stable coin that is based on the Fiat currency that they are using within the country because it makes it easier to convert between cryptocurrency and the local currency for various transactions.

 

[Brain]

There are many countries that are starting to develop their own stable coin that is based on the Fiat currency that they are using within the country because it makes it easier to convert between cryptocurrency and the local currency for various transactions.

Your assertion seems right because when it is easy to change from one form to the another then using a currency become a necessity and it will bring about issuing it more for transactions

 

[AudraMiller]

Your assertion seems right because when it is easy to change from one form to the another then using a currency become a necessity and it will bring about issuing it more for transactions

When it comes to cryptocurrency the most important thing that people are looking for its ease of transaction and convenience as well. If people have the digital fiat currency they are likely to use it more for their cryptocurrency as well.

 

[Balint098]

Cryptocurrencies, including bitcoin, doesn't rely on anything like fiat money. Its value is mostly determined by user demands.

 

[LutherKing]

Its definitely priced on demand but actually depends on money available on the market just like monopoly games that tells about the economy and buying power

 

[07Trinity]

I really doubt that because Bitcoin on its own is a universal coin and it's not particular to a given set of Fiat currency,hence there is no module for circulation or control.

 

[Mariappa45]

I don't think BTC price is dependent on how much fiat currencies that are minted. BTC is growing due to more adoption around it's ecosystem.

 

[btaliat]

Though I understand the article but I don't see much correlation between the two currencies. There are more factors to determine this other than printing of money.

 

[Sotherefore]

I don't really think so, cryptocurrency depends on the law of demand and supply for its price movement and value, The us dollars might have an affect in the price of cryptocurrency but this is not something that have huge impact in the movement of cryptocurrency.

 

[Chibson]

To some extent there is an element of truth,but with the current happenings and nature of things on ground one can attest to the fact that Bitcoin as no fix regulation,infact one of the major influence on Bitcoin is inflation and general news update,it is also believe that Bitcoin respect price action.

yeah, definitely cryptocurrencies are always affected by the news and the respect price action. sometimes I don't even depend on technical analysis in order to invest in any cryptocurrency but fundamental analysis. I always look for news about cryptocurrencies because the majorly move the market.

 

[AudraMiller]

To some extent there is an element of truth,but with the current happenings and nature of things on ground one can attest to the fact that Bitcoin as no fix regulation,infact one of the major influence on Bitcoin is inflation and general news update,it is also believe that Bitcoin respect price action.

Inflation does have a massive impact on bitcoin however i think that this is the one that is a positive impact because when people see that there is a high inflation rate, then what tends to happen is that there is a massive rush to buy bitcoin and the demand goes up to try and beat inflation.

 

[AudraMiller]

I have to agree with you,I always think inflation connotes the high price of an item, or could it be that the tendency to that the price of an item will inflate in the future using cryptocurrency as a case scenario can be a spinning factor to stimulate Bitcoin price.

The reason why there is a direct link between the two because when there is a massive rise in the number of people that are buying cryptocurrency when they are trying to retain the buying power of the money that they have. therefore you are likely to still maintain your lifestyle that way.

 

[ashim kate]

Bitcoin does not have anything to do with Fiat as it is in currency on his own. The price of Bitcoin is dependent on the amount of people who use it and the demand for it. Fiat on the under release what is used in physical transactions and it is usually affected by demand also and the rate of inflation in the country.

 

[highspeed]

I don't see practically none correlation between Bitcoin and fiat currency.
This is because Bitcoin is a paperless digital currency invented in 2009 and furthermore there has been no regulation and no government involved.
As a result, many people have used it to invest above all taken advantage literally of Bitcoin's decentralized currency.

 

[AudraMiller]

Bitcoin does not have anything to do with Fiat as it is in currency on his own. The price of Bitcoin is dependent on the amount of people who use it and the demand for it. Fiat on the under release what is used in physical transactions and it is usually affected by demand also and the rate of inflation in the country.

If you look at fiat currency however there is some effects on the cryptocurrency price as well. For example if you look at the price of the dollar, as the fiat currency of the dollar starts to increase you will notice that there is a massive chance in the bitcoin price as well in order to correct for this change.

 

[Styleplus]

Bitcoin does not have anything to do with Fiat as it is in currency on his own. The price of Bitcoin is dependent on the amount of people who use it and the demand for it. Fiat on the under release what is used in physical transactions and it is usually affected by demand also and the rate of inflation in the country.

You just said exactly what I had in mind,I wonder how they relate Fiat that is humanly control to cryptocurrency. Fiat is affected by inflation and deflation caused by human activities and has no correlation to do with price change in cryptocurrency. This is vice versa because crypto currency is influence entirely by it's demand and Supply globally.

 

[CyberPreNurse]

The price of Bitcoin does not in any way rely on the amount of local currencies that are currently being produced because they are similar to that not even interested in cryptocurrencies and so they will be using their local currencies to invest in physical assets like gold silver and others like real estate to and not bother about cryptocurrencies most especially Bitcoin.

 

[AudraMiller]

You just said exactly what I had in mind,I wonder how they relate Fiat that is humanly control to cryptocurrency. Fiat is affected by inflation and deflation caused by human activities and has no correlation to do with price change in cryptocurrency. This is vice versa because crypto currency is influence entirely by it's demand and Supply globally.

In this way I think that we can say that the effect of Fiat currency and cryptocurrency on inflation is actually the complete opposite from one another because one of them is actually driving right now in the economy and the other is seeming to have a lot of Downside and therefore people are moving away from Fiat currency.

 

[dorcasy]

How does dollars correlate with Bitcoin which is decentralized? Is dollars the only currency that influence the movement of bitcoin?
I am actually asking this question because dollars can influence the currency of other countries no doubt but how does it correlate with cryptocurrency and if possible is there a past scenario we could highlight from.

 

[Balint098]

Not directly, I think. The less the government or the mint prints US dollar, the rarer the money circulates around the world, that means higher value for USD. People tend to hoard USD at such times. On the other hand, the more USD in circulation, the value of USD decreases significantly, and people are no looking for a safe haven to invest.