What do you think guys? Do you agree that Bitcoin is more stable than USD? In my opinion, it is No, unless it is backed up by the government. Bitcoin is used in peer-to-peer cash systems, It is also a strong currency, The volatility of bitcoin prices is extremely high compared to the volatility of USD in major exchange rates. What can you add to this? Would you also agree?
Is Bitcoin more stable than USD?
- Thread starter Starmix
- Start date
Yes. Absolutely correct, the had us much more stable than bitcoin, you can't compare the stability of USD to bitcoin, bitcoin is extremely volatile, so one has to be careful and also bear that in mind while dealing with bitcoin, but it's not so with USD.
- Thread starter
- #4
You're so right, USD is strong and stable and it's used by many countries in transacting overseas. The OFWS in Ph all their salaries are converted to USD before arriving to my country though banking services already in Ph money.
Let's not confuse things, that a dollar is equal to a dollar does not mean that it is stable, the dollar since its creation has lost 99.9% of its value due to inflation, and bitcoin has risen since its creation to its historical maximum more than 100,000%, that is volatil, it is clear, but that the dollar is more stable I have my serious doubts.
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- #6
You're entitled to your opinion, but for me dollar remains dollar. Let's just wait for the years to come what will happen to those currencies. Dollar remains the currency in transacting businesses in my country, no other currency.
I really rely on data, you just have to see the historical graph of the dollar offered by the Federal Reserve itself, it is in free fall and will continue to be so, which is the world reserve currency and the main currency of world exchange does not deny anyone, but the value of the dollar is something else.
and what is the original value of the dollar? and how do you measure it? Everything is measured in Fiat so you can not see what the real value of the dollar is, just because 1 dollar is 1 dollar does not mean that it has the same value, if not, you can take a look at the graph above, also only if we look at the theory of inflation, the dollar never has the same value as the previous year, if not that it always depreciates.
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- #10
The value of dollar depends on your country. In my country, the value of $1 is P55 pesos, and no bitcoin is mentioned as the exchange rate in the Philippines. All currencies abroad are converted to USD before reaching to the designated bank already in Peso.
The value of the dollar is the same as established by the market, it can change due to your local currency or because there is an interventionist market regime in the particular country where exchange rates are not fair and the government or any other entity stays a margin of change too large, but the value is established by the market, on the other hand nobody says that Bitcoin is used as a world currency or reserve currency, as I repeated earlier, here we are talking about value and appreciation or deppreciation and stability, we can also talk about the Swiss franc which is much more stable and better than the dollar, but of course it is not world reserve currency or exchange currency so nobody cares.
Bitcoin can never be more stable than a fiat and not just an ordinary fiat currency but the US dollars. Cryptocurrency are known to be highly volatile and cannot be depended on.
Bitcoin has no control, the price is floating and is influenced by several factors, so it has high volatility and is full of risks for ordinary people. Meanwhile, the USD is controlled by the government or the Fed, which controls the USD when inflation occurs. So USD is more stable than Bitcoin, and the price of Bitcoin also fluctuates according to the interest rate of the Fed.
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- #15
Very well said, my friend. Bitcoin has no control and the USD is a strong currency worldwide which is why many like to work and even migrate to the United States because of the US dollar.
