Economists are ringing alarm bells as the trade-weighted dollar index (also known as the broad index, a tool used to establish the US dollar’s value compared to other currencies) verges on breaking an enormous cup and handle pattern. This may sound bullish, but not for the rest of the world. This Dollar strength is causing a large scale global deflationary wave, leading many to wonder: is Bitcoin becoming more promising than Fiat?
The only well performing “currencies” appear to be Gold and Bitcoin
Defeatist patterns were seen in markets around the world: ADXY (Asian markets) are witnessing a head and shoulders pattern, while The Austrailian Dollar and New Zealand Dollar have fallen off the cliff entirely. Things aren’t looking good for the Korean Won and Canadian Dollar either. While the Euro and Great British Pound also seem to also be lemming their way to the cliff’s edge.
The only well performing “currencies” appear to be Gold and Bitcoin, the latter displaying big price movements and fast probabilities. In the last 15 years, the price of Gold has been on the up and up. Going for gold: outperforming the US Dollar, the commodity has now reached a 6-year high this week.
As the whisperings of an impending Currency Crisis circulate, we can’t ignore the growing strength of the cryptocurrency market. As a matter of fact, the Bitcoin price so far in 2019 has almost tripled, indicating a vast increase in adoption.
Is Bitcoin becoming more promising than Fiat?
This sentiment is further reiterated with the current USA / China trade war driving the price of Bitcoin further up. And if this trade war drags on, we are likely to see the price of Bitcoin rally, as this short history has shown us.
The decentralized nature of cryptocurrency is beneficial to those with failing currencies. As the value of their local currency diminishes, the value of Bitcoin remains relatively stable, or as we’ve witnessed with trade wars, increases. This enables users to send their money anywhere in the world in an instant, passing the limitations of the fiat they hold.
While the times for Fiat feel uncertain (and predominantly moving in a cliff-ward direction), Bitcoin feels more stable than ever. Providing not only a reliable store of value, but an ever-expanding medium of exchange. As more companies are releasing crypto payment cards, more merchants are beginning to accept them. This year alone we’ve seen heavyweight retailers like Wholefoods, Crate and Barrel, and Nordstrom open their doors to Bitcoin as a payment method. A trend that’s unlikely to slow down.
In answering the great question of “Is Bitcoin becoming more promising than Fiat”, with all the evidence displayed above, we’re inclined to agree (and we’ll throw in Gold too, for good measure).
The question on many people’s lips is whether Bitcoin gains are taxable. This is a great question for anyone looking to enter, or already involved in crypto trading.
It’s no secret that cryptocurrency has blown up over the past few months. With bull runs, high company investments and the media constantly discussing it, cryptocurrencies have established a firm and solid foundation in the financial world and payments services industry.
If you’re in the United States and have finally woken up to the exciting world of crypto, or perhaps you’re just looking for a new means to onboard digital currencies, we’ve got you covered in this How to Buy Bitcoin in the United States in 2021 guide.