Monday, October 24, 2022

Does the USD Influence Bitcoin?




Yes. 

Bitcoin's price moves inversely to the USA exchange rate to major currencies, as almost all commodities's prices do.

Actually, Bitcoin is considered a commodity by the Securities and Exchange Commission. This can be due to the fact that Bitcoin's creation/production requires huge amounts of energy.

However, Bitcoin will sooner or later move in the same direction as the USD exchange rate, I forecast.

Because Bitcoin's main function is to at least partially replace the United States Dollar. One Russian journalist. I think once said that Bitcoin is USD 2.0 or with other words Bitcoin is a perfected, online version of the USD, the main world's reserve currency.

Actually, this is a unique situation. Never before have two currencies, a leader and a challenger developed simultaneously.



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